A company has a production capacity of 500 units per month 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
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- 9. Assume a constant marginal cost of $0.01/kwh for hydro and $0.09/kwh for natural gas given installed capacity. Assume that installed capacity can be bought at the beginning of the year and sold at the end of the year at the same price and that the discount rate or interest rate is 8.76% and that there are 8760 hours in a year. A kilowatt of natural gas capacity costs $1000 and a kilowatt of hydro capacity costs $10,000. Because you can buy and sell the capacity at the same price this means that the fixed cost of installed capacity is just the opportunity cost of capital, or the interest rate times the purchase price of the capacity.a. What is the average total cost of producing 8760 kilowatt hours in a year using one kilowatt of installed hydro capacity?b. What is the average total cost of producing 8760 kilowatt hours in a year using one kilowatt of installed natural gas capacity?1. There are 3 possible ways of increasing profit as provided in the module (With TC constant, increase TR, With TR constant, decrease TC, and Increase TR, and decrease TC). In each way, describe how your project in chapter 1 (Small Farm Business) can be able to attain increasing profits.2. How are you going to apply the EOQ principle and Break-even point analysis to the management and improvement of your project in chapter 1 (Small Farm Business)?Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: Complete the table below. Current Situation Projected Sales and Profit Incremental Revenues and Costs Total Revenue Php1,500,000 Php1,800,000 Variable Cost 575,000 425,000 Direct Fixed Costs 625,000 700,000 Indirect Fixed Costs 100,000 100,000 Profit Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
- 3. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are $12,500 per research project.a. If the revenue per project is $30,000, what is the breakeven number of projects of this lab in a year to sustain its operations?b. Currently, the lab works on 20 projects a year. What is their profit at this level?c. If variable costs increase to $13,000 per research project, what is the new BEP? By how much will their profit increase or decrease?ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. b. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. (3 marks) • Total revenue $ 500,000 • Wages and salaries $ 40,0000 • Forgone salary $ 80,000 • Interest paid $ 10,000 • Forgone rent $ 10,000 • Raw materials $ 50,000 • Other payments $ 20,000 • Forgone interest $ 7,000ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue Wages and salaries Forgone salary Interest paid Forgone rent Raw materials Other payments Forgone interest
- 1. The amount of fixed factory costs applied to the product during the first 6 months under absorption costing is? A. Over-applied by $20,000. C. Under-applied by $40,000. B.Equal to the fixed costs incurred. D. Under-applied by $80,000. 2. Reported net income (or loss) for the first 6 months under absorption costing is? A. $160,000 B. $0 C. $40,000 D. $(40,000) 3. Reported net income (or loss) for the first 6 months under variable costing is? A. $180,000 B. $40,000 C. $0 D. $(180,000)How would you approach this issue if you were the manager in charge of sourcing raw materials for LEGO? How would PESTEL analysis inform your actions? What PESTEL challenges is LEGO trying to address by changing the raw materials used in its products? Explain what favorable PESTEL factors support LEGO’s efforts. for the lego project5 Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting profit of £200m from doing so. It has also the option to begin exporting to India, Brasil or South Africa, but it has the production capacity for only one of the four possible markets (including Sweden). The expected annual accounting profit for the above three markets is £250m, £200m, and £150m respectively. On the basis of this information, the economic profit of exporting to Sweden is equal to: a. -£50m. b. £0m. c. £50m. d. £200m.
- A Leading mobile phone manufacturer is about to introduce a new series, initially they are launching 4 models of the same series. The accompanying table summarizes price and variable costs data, combined fixed costs equal $540,000. Models Infinity A Pro Max Infinity A Pro Infinity A Infinity A Lite Selling Price (in dollars) 500 400 340 220 Material Cost /unit (in dollars) 220 190 150 90 Labor Cost/unit (in dollars) 90 65 65 50 Table 1 a) Develop a joint total revenue function for sales of the four different models. b) Develop an annual total cost function for manufacturing the four models. c) Develop the profit function for sales of the four models. d) Calculate the annual profit if the firm sells 9000, 12000, 45000 and 22000 units, respectively, of the four models?The fast answer is best . Thank you. Like like like. The manufacturer of smart printers is trying to decide what price to set for its product. The demand and cost function are assumed to be as follows: P = 80 -2Q TC= 160 +50Q-1.5Q ²a. What price should the company charge if it wants to maximize its profit in the short run? What is the optimal quantity for the printer following this optimal price? b. What price should it charge if it wants to maximize its revenue in the short run? What is the optimal quantity for the printer under this price? What will be the maximum revenue?Teasha Pratt will graduate from high school next month and cannot decide what she wants to do. She had originally planned to go to college and major in marketing and accounting, but now she is thinking about opening her own business. Teasha has worked in a gift store for the last two years and gained a lot of experience and knowledge by working with inventory, pricing, customers, and accounting. However, her real interest is in crafts. After conducting some marketing research, Teasha determines that there is a very small market for a craft store (there are currently two craft stores in town), but there is a larger market for a gift store. Teasha decides to open a small gift store in the mall with a loan from the local bank. After much hard work, she locates two suppliers (Gifts Plus Wholesalers and Hearts Manufacturing Corporation), hires employees, and buys display equipment, accounting equipment, a cash register, supplies, etc. Three months later, she is ready to open her store. 1.…