A company has a production capacity of 500 units per month and its fixed costs are ₱250000 per month. The variable costs per unit are ₱1,150 each and each unit can be sold for ₱2000. Economy measured are instituted to reduce the fixed cost by 20% and variable cost by 10%. Determine the old and new break even points. What are the old and new profit at 100% capacity
Q: Engr. Roque owner of the HarRoq’s Ice Plant is monitoring the cashflow of the plant. Based on the…
A: The total cost incurred by firms operating in a market is the sum of fixed costs and variable costs.…
Q: The Smelting Department of Sunland Company has the following production datafor November. Beginning…
A: Given:- Units completed and transferred out=8460 Ending work in progress=6580 which is 100% complete…
Q: ete's Paper Processing processes paper to sell to office supply stores. They sell several lines f…
A: The daily demand is 15 pallets. Daily production rate is 35 pallets.
Q: A jewelry craftsman needs 100 grams of gold alloy, of 75% pure gold for his products. Only two…
A: Let x = grams of 80% pure gold and y = grams of 60% pure gold So, x + y = 100 ...(1) And similarly,…
Q: The first cost of a pipe forming machine is Php 1,000,000.00. It can produce 10,000 pipes during its…
A: Answer; a. Fixed cost per piece of pipe:15 b. Variable cost per piece of pipe:51 c. Total…
Q: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the…
A: Given: If the dollar contribution margin increased by = 10% The total fixed cost is decreased by =…
Q: Song's Inc. is considering a project that has the following cash flow and WACC data. What is the…
A: Your answer is in 2nd step:
Q: Q.No.4. Admin should be given an option on login to see the total sale and profit gained, also Which…
A: Profit is the financial gain derived from the deduction of total costs from the total revenue of an…
Q: In building their plant, the officers of the International Leather Company had the choice between…
A: Present value (PV), is the value of a normal still up in the air as of the date of valuation.
Q: Given that fixed cost 330 and varioble cost+120: the totol varioble cost of producing 30 unts of…
A: Total cost is the sum of fixed cost and variable cost
Q: Question 7 (Breakeven Analysis) You decided to sell Only coffee using Nespresso machine during…
A: Given: Nespresso Machine Cost =3,000 SAR One brown sugar = 0.5 SAR, one disposable cup =1.5 SAR, one…
Q: Your company plans to raise price on product A by 5% per year. Due to competition, sales volume from…
A: Introduction Our business intends to increase the cost of Item A by 5% annually. The volume of sales…
Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…
A: Given below is the solution for 1, 2, 3 and 4.
Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…
A:
Q: One of the energy companies incurred miscellaneous costs and a group of engineers analyzed the costs…
A: A) The cost(C) associated with the establishment of the long-term contract has various kinds. The…
Q: A firm has the capacity to produce 650,000 units of product per year. At present, it is operating at…
A: a) Given that firm is operating at 64% of capacity. So,Annual Production = 650,000 x 64% = 416,000…
Q: SummerFun, Inc. produces a variety of recreation and leisure products. The production manager has…
A: A thorough overview of a company's policies, objectives, and activities may be characterized as a…
Q: Mary, a law student in a University, wants to buy a book on Negotiable Instruments. To do this, she…
A: Given:i)Fixed cost=Rent of oven+Rent of baking panFixed cost=1,400+300Fixed cost=P 1,700ii)Variable…
Q: 1. Petromax sells oil at a markup of 40% of the selling price. If Petromax has paid Php 22 per liter…
A: Given: The markup percentage = 40% The petromax has paid = Php 22 per liter of oil To Find: The…
Q: What would you do if economic lives of the projects were unequal? Research, Explain and Make some…
A: The replacement chain approach is used to compare projects that are mutually exclusive yet have…
Q: turer produces a pair of gloves at labor cost of 15 and a material cost of 40 a pair. The fixed…
A: Given fixed cost = 90000 Labor cost = 15 Material cost = 40 Other variable cost = 15 Total variable…
Q: Machine cost = $15,000; Life = 8 years; salvage value = $3000. What minimum cash return would the…
A: Given, Initial Investment= $15,000 Desired Rate of Return= 8% Time= 8 years Rate of Accumulation= 5%…
Q: Astume thit a company consisting of four divisions is considening three investment projects, A, 8…
A: In economics, it is said that when an individual enters the market, he will try to make rational…
Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…
A: Demand refers to the quantity that a consumer wishes to buy at a given price in a given period of…
Q: 5. Tamima farm in Jatinangor has 4 major fields that are used to grow corn. The productivity of each…
A: The farmer’s decision on how much corn he wants to produce will depend on the amount of revenue he…
Q: $600,000, the equipment costs $250,000, and $100,000 working capital is required. It is ex- pected…
A: Total first cost = 300,000 + 600,000 + 250,000 + 100,000 = 1,250,000 Annual net benefit = sales -…
Q: Firm Cost (Php) Morgana's Queso de Hamon Anne's Heavenly Hams 3.950,000 4.500,000 A government…
A: The following problem has been solved as follows:
Q: schylar Pharmaceuticals, Inc., plans to sel 130,000 units of antibiotic at an average price of $22…
A: Here, we calculate the given as follow;
Q: A firm has the capacity to produce 1,000,000 units of a product each year. At present, it is…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What are the fixed cost and variable cost form th ebelow list? 3000 Bottles price 25782.6 2 years…
A: In economics, there are 2 crucial costs which are: (i) fixed costs- These are the costs that remain…
Q: 3. A cIvil engineer has invented a walling material that sells for P1,500/ur of his company is…
A: Selling Price = 1,500 Fixed Cost = 210,000 Variable Cost = 800/unit
Q: The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton.…
A:
Q: The ore of a copper mine in Visayas contains, 0.7 grams of copper per ton. First method of…
A: Grams in ton=907,184.74 0r 907,184.75 Method 1 Copper recovered = (907,184.75×.0.7)…
Q: 7. A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The…
A:
Q: III. PROBLEM SOLVING: Lino Batumbakal is now exploring the option to start selling beef wellington.…
A: Demand refers to the quantity that a consumer wishes to buy at a given price in a given period of…
Q: A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month.…
A: Answer in step 2.
Q: A man is considering investing P500, 000 to open a semi-automatic auto- washing business in a city…
A: Answer A B C D
Q: .What is the equivalent annual cost of the Econo-Col model? (Do not round imermediate calculations.…
A: the equivalent annual cost is the cost per year of owning and operating an asset over its entire…
Q: (a) What do you mean by inventory carrying cost and ordering cost?
A: Inventory, often known as merchandise, refers to items and commodities that a company keeps on hand…
Q: Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost…
A: ''Since it is a mutipart question, we will solve the first three sub-parts for you. If you want any…
Q: An artisanal manufacturing plant has 30 horsepower of connected load and consumes 2,800…
A: Introduction A consumer consumes 2800 kilowatt hours monthly and the manufacturing load of the plant…
Q: The maximum annual capacity of a telecommunication company is 500,000 units. The said company…
A: Profit is the reward for bearing the risk and it is the excess amount of revenue after deducting all…
Q: 5. A plastic company operates 300 days a year. It produces and supplies 300,000 plastic caps for…
A: Operates = 300 days Supplies = 300,000 plastic cups Production = 12000pcs Annual Carrying Cost =…
Q: Ari's Cat Princess produces a line of luxury cat treats designed to appeal to elderly cats They are…
A: Given: The demand for treats is- 50 cases per day The capacity for producing the product is - 90…
Q: The project is to construct a lateral canal that will provide irrigation for 150 ha production area…
A: Given information Project provides irrigation=150 ha Land cost=950 per ha Construction cost=4500000…
Q: ume of sales does th
A: Answer Units produced at 62% capacity= 650,000 units x 62%= 403,000 unitsTotal Variable Cost =…
Q: A man is considering putting up his own enterprise, where an investment of 800,000 will be required…
A: Since the question you have posted consists of multiple parts, we will answer the first three parts…
Q: a thousand of pesos (P1.000.00). In economic perspective, would you contend th he only cost…
A: Disclaimer: Since you have put a multi-part question, we are providing you with the solutions to the…
Q: Larkspur Industries has the following patents on its December 31. 2019, balance sheet. Initial Cost…
A: Compute the total carrying amount of Tones' patents on its December 31, 2019, balance sheet.
Step by step
Solved in 4 steps
- Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each,a. what is the break-even quantity per month?(Hint: for Break-even quantity, COST = REVENUE)b. how many units must be produced each month in order that the net profit equalsthe cost?c. what is the net profit if for a production of 4000 units per month, in pesos?(HInt: PROFIT = REVENUE - COST)22. An architect produces a certain construction material at a labor cost of P 16.20 per piece, material cost of P 38.50 per piece and variable cost of P 7.40 per piece. The fixed charges on the business is P 100,000.00 a month. If he sells the finished product at P 95.00 each, how many pieces must be manufactured in each month to break even?
- BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.Heinrich is a manufacturing engineer with the Miller Company. He has determined the costs of producing a new product to be as follows: Equipment cost: $288,000/year Equipment salvage value at EOY5 = $41,000 Variable cost per unit of production: $14.55 Overhead cost per year: $48,300 If the Miller Company uses a 5-year planning horizon and the product can be sold for a unit price of $39.75, how many units must be produced and sold each year to break even?A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even?
- Please answer with CFD: In building a plant, the Santos Novelty Corporation had the choice between three alternatives: One alternative is to build in San Mateo, Rizal where the plant would cost P2,000,000. Annual labor would cost P120,000 and annual overhead cost of P40,000. Taxes and insurance would total 5% of the first cost of the plant. The second alternative would be to build in Montalban Rizal where the plant would cost P1,950,000. Labor would cost annually P115,000 and overhead would be P50,000. Taxes and insurance would be 4% of the first cost. The third alternative would be to build in Marikina City a plant costing P2,250,000. Labor would cost annually P100,000 and overhead would be P55,000. Taxes and insurance would be 3% of the first cost. The cost of raw materials would be the same in other plant. If capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose? Use Future Worth Cost Method.The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. Itsold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and salesincreasing by 10% each year until it was last sold in 1990 (when it was made illegal). Assume aninterest rate of 12% per year. Assume sales were made at EOY. What was the worth of these cashflows in 1980? Show in standard factor notation and show the cash flow diagrams.Q2) One of the energy companies incurred miscellaneous costs and a group of engineers analyzed the costs according to the long-term investment contract. Answer the following points based on the above situation: A) How would you classify these possible costs based on line of your study that will be included in each annual economic assessment. Within short clarification for each possible costs that you suppose to mentione it? B) Give an simple example about each costs-line. C) How will the level of revenue be determined economically? Clarify this statement?
- A subsidiary of a major furniture company manufactures wooden pallets. The plant has the capacity to produce 300,000 pallets per year. Presently the plant is operating at 70% of capacity. The selling price of the pallets is $18.25 per pallet and the variable cost per pallet is $15.75. At zero output, the subsidiary plant’s annual fixed costs are $550,000. This amount remains constant for any production rate between zero and plant capacity. Solve, a. With the present 70% of capacity production, what is the expected annualprofit or loss for the subsidiary plant. b. What annual volume of sales (units) is required in order for the plant to break even? c. What would be the annual profit or loss if the plant were operating at 90% of capacity? d. If fixed costs could be reduced by 40%, what would be the new breakeven sales volume?Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.Given problem: The ore of a gold mine in the Mountain Province contains, on average, 0.5 grams of gold per ton. One method of processing costs $1,650 per ton and recovers 93% of the gold, while another method costs only $1,500 per ton and recovers 81% of the gold. If gold can be sold at $8,500 per gram, which method is better, and by how much? Consider the income and cost per ton of ore. Solve for the net receipt of each method. *Round off answer in 2 decimal places. Thank you