Concept explainers
Videos
a.
To Compute: Total cost, total revenue and total profit.
Introduction: Total cost is the result of summation of ‘variable cost’ and ‘fixed cost’. To calculate the total cost, the sum of ‘variable cost’ and ‘fixed cost’ is multiplied with the number of units, that is, volume.
a.
Explanation of Solution
Given information:
It is given that the fixed monthly cost is $8,000, variable cost is $65, monthly volume is 300 tables and the selling price is $180 per piece.
Determine the total cost, total revenue and total profit:
Total cost to produce tables:
Total cost if the total of the ‘variable cost’ and ‘fixed cost’. The formula to calculate Total cost is as follows:
Total cost is calculate by adding the fixed cost and variable cost. Variable cost is calculated by multiplying per unit variable cost by monthly volume.
Total revenue from selling the tables:
Total revenue is the revenue earned by selling the units. The formula to calculate total revenue is as follows:
Total revenue is the revenue earned by selling the units produced. To calculate the total revenue monthly sales volume is multiplied with selling price per piece.
Total profit from selling the tables:
The profit is the difference of the ‘total revenue’ and ‘total cost’. The formula to calculate total profit is as follows:
Working Note:
Calculation of variable cost:
b.
To compute: The monthly break-even sales volume.
b.
Explanation of Solution
Given information:
It is given that the fixed cost is $8,000, variable cost is $65 and the selling price per piece is $180.
Determine the break-even volume for the willow furniture company:
At break-even volume, the ‘total revenue’ and ‘total cost’ are equal and it is a situation where there is neither profit for the organization nor loss.
Formula to calculate break-even volume, denoting the volume as ‘v’, is as follows:
Want to see more full solutions like this?
Chapter 1 Solutions
EBK INTRO.TO MANAGEMENT SCIENCE
- Eligibility testing is an disparate impact validation method none of the above a method to validate promotions and progressive discipline activity a test an employee administers to ensure that the potential employee is capable and qualified to perform the requirements of the positionarrow_forwardA no-strike pledge by a union in a collective bargaining agreement is given in return for management’s agreement to: a grievance procedure a union shop a wage increase a fringe benefit increase binding arbitration of grievancesarrow_forwardWhich is the major OD technique that is used for increasing the communication, cooperation, and cohesiveness of work units? Leadership analysis Developing objectives Groupthink Strategic Planning team Buildingarrow_forward
- An American multinational firm usually is less than fully successful in adapting itself to local practices in each country because: American managers are often ignorant of local conditions None of the above management direction may be centralized in the home office All of the above Foreign subsidiaries often have American managersarrow_forwardWhen salary increases are based on inputs, or performance, companies are following: agency theory equality theory equity theory compliance theory need theoryarrow_forwardThe most frequently used techniques for measuring job satisfaction involves Direct observation Questionnaires Interviews Psychological testsarrow_forward
- Which of the following is not an advantage of on-the-job training? Transfer is less difficult Transfer is less difficult The training is inexpensive Any organizational member can be the trainer without preparation It is relatively easy to use this methodarrow_forwardDiversimilarity is characterized by A systematic and dual emphasis and appreciation of both the differences and the similarities that members of an organization have Everyone is either the same or different Attempting to change the values of minority groups to make them conform with the views of the dominant group Emotional intelligence of everyone involvedarrow_forwardCultural environment includes all of the following components except: religious beliefs values/ideologies corporate structure education/human capitalarrow_forward
- Search firms _____________. All of the above place consultants onsite for their clients are outsourced to search and place full-time employees for their clients place contract employees for the clientsarrow_forwardWhich of the following accurately describe the functions of the NLRB: most cases are settled before they reach the board the five member board is required to make a ruling in all cases the board rules only in cases involving interpretation of the Constitution the five member board is required to make a ruling in most casesarrow_forwardThe best way to manage diversity within an organization depends upon three factors: The degree of pressure for diversity, the type of diversity in question, and managerial attitudes about diversity The skills of top management, the culture itself, and change orientation Acceptance of diversity, change orientation, and employee intelligence Managerial attitudes about diversity, their skills, and their willingness to change the organizationarrow_forward
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.