Economics- Activity2

Your organization sells tables for $200 each. The fixed cost is $25,000 per annum with current demand at 700 tables per annum. Each table has a direct material cost of $65 and direct labour cost of $83. Required: A. I) what is profit based on the current demand? i) How many tables should be sold to get a profit of $5,000? A. The organization is considering two alternative proposals. i. Reducing selling price by 15% which is expected to increase demand by 10% ii. Increase selling price by 5% which is expected to reduce demand by 10% What will be the profits or loss under each alternative proposal?

SmartTech Electronics sells wireless earbuds at $80 per unit. The variable cost per unit is $35, and fixed costs are $90,000 per year. What sales volume (in units) is needed to achieve a target profit of $60,000?

1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? a. ABC company is contemplating adding a new line of product, which will require leasing new equipment for a monthly payment of $12,000. Variable costs would be $15.00 per product, and selling price per product is $40. What would be profit or loss if business sell 600 of these products? b. If 800 quantity of products can be sold, and a profit target is $10,000, what price should be charged for each product?

Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are $600,000, its variable costs are $500 per card, and it must sell 15,000 cards to break even the first year. What is the minimum price per unit it should charge

You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt The labor cost is $5 per shirt. Additionally, the cost of materials will be $10 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year. What is the break-even in units and BEP in dollars? Formulas: Contribution Margin = Unit Selling Price-Unit Variable Cost Profit - Total Revenue - Total Cost or Profit - Quantity Sold (Selling Price per unit - Variable Cost per unit) - Fixed Cost Fixed Cost Break-even (quantity) = Unit Selling Price - Unit Variable Cost Break-even ($) = Break-even (quantity). X Quantity Sold Fixed Cost + Profit Desired Unit Selling Price - Unit Variable Cost Target Quantity for certain profit =

MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per year. If the firm sells 5,000 units per year, what price should be charged for each unit to earn $35,000?

A cafe currently offers a cup of cafe latte for P100. The variable costs are P58 per cup, and 10,000 cups are sold annually and a profit of P200,030 is realized per year. A new design in making the coffee will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,493 cups per year. If we employ the new design, at what selling price do we break even?

A product currently sells for $12 per unit. The variable costs are $4 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,000 units per year. (a) At what selling price do we break even with the new design?.  (b) If the selling price is to be kept same ($12/unit) what will the annual profit be?

A product currently sells for $16 per unit. The variable costs are $8 per unit, and 10,000 units are sold annually and a profit of $30,000 is realized per year. A new design will increase the variable costs by %40 and Fixed Costs by %50 but sales will increase to 32,000 units per year. (a) At what selling price do we break even, and (b) If the selling price is to be kept same ($16/unit) what will the annual profit be?

A small coffee shop currently offers a cup of cafe latte for P107. The variable costs are P62 per cup, and 10.346 cups are sold annually anda profit of P200,577 is realized per year. A new design in making the coffee will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,003 cups per year. If we employ the new design, at what selling price do we break even? Next No new data to save. Last checked at 2:26pm Submit Quiz IOLYANGEL 100% 31°C Haze DELL

How many units must it sell?

please answer question 1 with details on how to do it. Thank you.

A company is analyzing its break-even point for a product with a selling price of $50 per unit. The variable cost per unit is $30, and the fixed costs are $200,000 per year. If the company wants to achieve a profit of $50,000, how many units must it sell to meet this profit goal?

Weber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?

Grove Audio is considering the Introduction of a new model of wireless speakers with the following price and cost characteristics. $430.00 per unit 190.00 per unit 624,000 per year Sales price Variable costs Fixed costs Required: a. What number must Grove Audio sell annually to break even? b. What number must Grove Audio sell to make an operating profit of $180,000 for the year? a. Break-even sales in units b. Number of units to be sold

I want to answer this question

A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos. Labor costs P20.00 per set and the materials cost P10.00. He has a maximum capacity of 1,000 sets per month, but expects to produce only 8,000 sets per year. If he could sell all what he expects to produce, how much is the selling price of each set just to break even?

The per-unit cost of an item is its average total cost (= total cost/quantity).Suppose a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units? 1000 units? 1 million units?

1. A recently retired professor, Melinda Marketing, plans to establish the Hot-Air FanCompany and manufacture circulating fans. She estimates the fixed cost of operations tobe $357,500 annually. The variable cost of producing the fans is forecasted to be $85 perunit.a. How many fans must be sold to break even if the fans are priced at $150?b. If Hot-Air sells 6,000 fans, what will be the EBIT?c. If Hot-Air sells 6,000 fans and has interest expense of $8,125, what is Hot-Air’stimes-interest-earned? Hot-Air does not have any nonoperating expenses.d. If the fans are priced at $150, what is Hot-Air’s breakeven sales? 2. Vapor Lock Motors’ EBIT is $7,000,000, the company’s interest expense is $2,000,000, and its tax rate is 40 percent. Vapor Lock’s beta is 1.5. a. What is Vapor Lock’s DFL? b. If Vapor Lock were able to grow its EBIT by 50%, what would be the percentage increase in net income? c. If Vapor Lock were able to grow its EBIT by 50%, what would be the resulting net income? 3. A…

Dog

4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a pair. Each pair of roller skates incurs $55 in variable costs. Calculate the following: How many pairs of skates needs to be sold to break-even? a. How many pairs of skates needs to be sold have $140,000 in operating income? If fixed costs increase by $7,500 how many more pairs need to be sold? b. с.