A certain firm has a capacity to produce 650,000 units of a certain product per year. At present, it is operation at 62% capacity. The firm's annual income is ₱4,160,000. Annual fixed cost is ₱1,920,000 and the variable cost are equal to ₱3.56 per unit. What is the annual profit or loss?
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A certain firm has a capacity to produce 650,000 units of a certain product per year. At present, it is operation at 62% capacity. The firm's annual income is ₱4,160,000. Annual fixed cost is ₱1,920,000 and the variable cost are equal to ₱3.56 per unit. What is the annual profit or loss?
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- A production plant has the capacity to produce 2,000 tons per year. At full capacity, there are total variable costs of Php 100,000,000 and fixed costs of Php 35,000,000.a. What is the annual profit for the plant when working at full capacity (2,000 tons) and the product sells for Php 40 per pound?b. What is the total cost per pound at full capacity?A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break-even points. What are the old and the new profit at 100 percent capacity?A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?
- A furniture manufacturer has an annual overhead cost of P120,000 plus 20% of the sales in pesos. Labor costs P20 per set and the materials cost P10. He has a maximum capacity of 1000 sets per month but expects to produce only 8000 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? Show solutions.A man is considering investing P500, 000 to open a semi-automatic autowashing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment?a) Use present worth methodb) Use future worth methodc) Solve for the payback period and the IRRA man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? c) Solve for the payback period d) Solve for the IRR
- A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? a)Use present worth method b) Use future worth method c) Solve for the payback period d) Solve for the IRRA man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city of 400, 000 population. The equipment can wash, on the average, 12 cars per hour, using two men to operate it and to do small amount of hand work. The man plans to hire two men, in addition to himself, and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. He will pay his employees P25. 00 per hour. He expects to charge P25. 00 for a car wash. Out-of-pocket miscellaneous cost would be P8, 500 per month. He would pay his employees for 2 week for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15%, and he is employed at a steady job that pays P25, 000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? Answer Anual cost=700,960 Excess= 19, 040 All I need is a solution for the problem. Our subject is engineering…3. Company A has fixed expenses of Php 15, 000 per year and reach unit of product has a Php0.002 variable cost.Company B has fixed expenses of Php5,000 per year and can produce the same product at a Php0.05 variable cost. At what number of units of annual production will Company A has the same total cost as Company B ?
- You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies. Issue Rival A Rival B Rival C Capacity Utilization At full capacity Moderate Very low Goodwill Considerations Very concerned Moderately concerned Not concerned Production Facilities Small and inefficient…You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies. Issue Rival A Rival B Rival C Capacity Utilization At full capacity Moderate Very low Goodwill Considerations Very concerned Moderately concerned Not concerned Production Facilities Small and inefficient…Allina opens an exotic bakery. Her capacity for the month is eight hundred (800) Love Cherry Short cakes. On average, in a month, she pays a fixed amount for water, electricity, security and a loan of TTD100.00, TTD1,200.00, TTD2,700.00 and TTD4,000.00 respectively. In addition, she estimates that TTD50.00 more must be paid for each Love Cherry Short cake she makes and sells. If she sells one Love Cherry Short cake for TTD90.00. Identify and clearly state all variables used. Determine the following: Allina’s total cost and revenue functions. From part a) state the domain and range the total cost and revenue functions. Allina’s total cost when she produces and sells one thousand Love Cherry Short cakes. The value of the rational function of total cost and total revenue when no Love Cherry Short cakes are made and sold. Answer the following based on the problem set above. a. write a short reflective piece (NO MORE THAN 50 words per Problem Set…