A company makes pens. They sell each pen for $77. Their revenue is represented by R = 7 x. The cost to make the pens is $33 each with a one time start up cost of $45004500. Their cost is represented by C = 3 x + 4500. a) Find the profit, P, (P = R - C) when the company sells 1000 pens. 7000 -7000 11500 -500 -1500

A company makes pens. They sell each pen for $77. Their revenue is represented by R = 7 x. The cost to make the pens is $33 each with a one time start up cost of $45004500. Their cost is represented by C = 3 x + 4500. a) Find the profit, P, (P = R - C) when the company sells 1000 pens. 7000 -7000 11500 -500 -1500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

See similar textbooks

Similar questions

Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the materials is 2,000 and you wanted to sell it at P3 000. However, you are paying a rent of P20 000 for your business operation. How many units do you think you need to sell in order not to incur losses or able to eamWhat will you do to achieve a profit?
Give what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?
Appliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a mark-up of 40% of the selling price, D. If overhead expenses are at 27% of the cost, what is the break-even price of the TV set? E. If the TV set is sold at PhP7,500, how much profit or loss is incurred by Appliance Store? pls. show all the solutions
PLEASE ANSWER IT NOW, I NEED THE ASNWER. A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that giving a 15% discount, will provide them with 25% profit?
A company manufactures and sells a single product whose selling price is P500 and whose variable expense is P300 per unit. The company’s monthly fixed expense is P120,000. Required:1. Solve for the unit sales that are required to earn a target profit of P80,000. 2. If the company wants to earn a profit of P200,000, how much should be the sales revenue?
Accounting If I have a start up cost of $25,000. My monthly costs are $10,000. My product sells for $6.00 and i make 67% gross profit. How many smoothies do I have to sell to break even? And at what rate do I have to sell smoothies if i want to be profitable in 3 years?
AMA Corporation has two products, x and y. The profit contribution of x is P50 per unit and the profit contribution of y is P25 per unit. The company has three machine centers that are available for 20, 24, and 18 hours respectively. Product x needs 1 hour in machine center 1, 3 hours in machine center 2, and 3 hours in machine center 3. Product y needs 2, 2, and 1 hour in machine centers 1, 2, and 3 respectively. The company can sell all it can produce. Find the number of units of x and y to produce to maximize the profit contribution
The following information relates to a company selling 25000 pairs of shoes for a year; sellingprice per unit- GH¢40, purchase cost per unit- GH¢25, fixed cost is made up of salariesGH¢100000, advertising- GH¢40000 and other fixed cost- GH¢100000. If a selling commissionof GH¢2 per pair was introduced, how many pairs should be sold to earn an after-tax profit ofGH¢12000 assuming a tax rate of 40%? A. 30000units B. 20000units C. 15000units D. 25000units Consider the information below for a company whose products goes through two processes;material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overheadcost as twice the cost of labour. The company expected an output of 9500kg from process 1 buteventually obtained 9400kg. The actual output of 9400kg shows that A. There is an abnormal gain of 100kg B. There is an abnormal loss of GH¢2632 C. Cannot determine without further details D. A normal loss
Please answer at least 3 of them. Dexter company makes cricket bats. Analysis of financial records for the current year reveals the following Average selling price $150 direct material $60.00 direct Labour $25 variable cost $15 Annual fixed costs selling $22,000 administrative $48,000 Melissa companies president has asked you to help her answer the following questions a) what is the breakeven point in number of bats and in dollars b) how much revenue must be generated to produce $80,000 earnings how many bats put this level of revenue represent c) Melissa is considering purchasing a new faster machine which will save $12.00 per bat in cost and will raise annual fixed costs by $8000. She expects to make and sell an additional 5000 bats should she make this investment…
Omega Company has the following two customers: Woodruff Ensley Sales $900,000 $800,000 Cost of Goods Sold 360,000 160,000 Other expenses excluding sales commissions 640,000 130,000 If the company pays a 4% sales commission based on customer profit, this will encourage a salespersons' efforts to sell to:
Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.
A company is producing a product for selling price of $1000, while incurs the following costs: Rent: $300, material delivery cost $150, raw material $250, loan interest expense 600, insurance $900, salaries $1200, manufacturing electricity $200, advertising 3000 Calculate the break-even in unites. Show your calculations.