A company sells one of its products for $10.40 per unit. Its fixed costs are $1,560 per month, and the variable cost per unit is $3.90. (a) The break-even volume is the next whole number of units.) units per month. (If necessary, round up to (b) If the selling price decreases by $2.90, the new break-even volume will be units per month. (If necessary, round up to the next whole number of units.)
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- ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but maysometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, thesupplier may take 7 days.Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also anopportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order ten-days-worth of inventory. (B) Economic Order Quantity 1. How much would the total inventory related (ordering plus carrying) costs be if the economic order quantity wasfollowed (excluding safety stock)? (D) Cost-Benefit Analysis: If ABC maintains its current inventory policy for the year,1. How much would the entity save it followed the reorder point and economic order quantity models?…ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average of 500 boxes but maysometimes sell a maximum of 600 boxes. The supplier takes an average of 5 days to deliver the order. During busier times, thesupplier may take 7 days.Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average P5 per year. There is also anopportunity cost of 1% per year for every peso invested in inventories. Each box of candles costs P450. If ABC would continue its current inventory management policy, it would keep 10,000 boxes as safety stock and order ten-days-worth of inventory. (B) Economic Order Quantity4. What is the annual demand for the boxes of candles?5. How much is the carrying cost of one box of candles for one year?6. What is the economic order quantity for the boxes of candles? Round UP.7. How many orders will be made per year on average if the economic order quantity was followed? Round off totwo decimal places.8. How much…The costs of producing a certain commodity consist of 125.00 per unit for labor and material cost and 320.00 per unit for other variable cost. The unit can be sold at 1,200.00. If the production capacity per month is 5,200 units, what maximum fixed amount can the company spend each month of breakeven? Answer: 3,926,000.00 Explain every process.
- A diesel engine uses a Type A filter and high-grade lubricating oil costing $5.50 per liter. With this filter, the oil and filter have to be changed every 500 hours of operation, and 5 liters of oil have to be added every 100 hours. This filter cost $148 a piece.Eighty liters of oil fill the engine. Another type, filter B, costing $120 may be used with a lower grade oil costing $4.80 per liter. However, if this filter is used, the oil andfilter have to be changed every 300 hours, and 10 liters are added after every 150 hours the engine is used. Which type of filter and oil would you recommend? Kindly show your complete solutions. Thank youAn Engineering consultant firm measures its output in a standard hour unit, which is a function of the personnel grade levels in the professional stuff. The variable cost is $62 per standard service hour. The charge-out rate (i.e., selling price) is $85.56 per hour. The maximum output of the firm is 160,000 hours per year, and its fixed cost is $2,024,000 per year. For this firm: (a) What is the breakeven point in standard service hours and in percentage of total capacity? (b) What is the percentage reduction in breakeven (sensitivity) if fixed costs are reduced 10%; if variable cost per hour is reduced 10%; and if the selling price per unit is increased by 10%. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A toy manufacturer uses 63,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 1000 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $.90 per wheel per year. Setup cost for a production run of wheels is $35. The firm operates 240 days per year. Determine the following: a. Optimal run size b. Minimum total annual cost for carrying and setup c. Cycle time for the optimal run size d. Run time
- The ore of a gold mine in the mountain province contains, on the average, 0.5 Gram of gold per ton. One method of processing cost P1,650 per ton recovers 93% of the gold, while another method cost only P1,500 per ton and recovers 81% of the gold. If gold can be sold at P8,500 per gram, which method is better and by how much?For a motor to operate a pump, a design engineer must choose the horsepower. Horsepower rating is a design characteristic that can vary from 10 to 40 horsepower. The motor will cost $120 per year to operate, plus $0.60 per horsepower. The running expenses of such motors will be $0.055 per horsepower-hour divided by the horsepower rating. Each year, 9,000 horsepower-hours will be required. Determine how much horsepower should be supplied to keep the overall yearly cost to a minimal. Demonstrate that your entire cost each year has been reduced.A manufacturer produces a certain product at a labor cost of P 315 per unit, material cost of P 100 per unit, and variable cost of P 3 per unit. If the item has a selling price of P 995, how many units must be manufactured and sold each month to break even if the monthly fixed cost is P 461,600. Select one: a. 850 b. 800 c. 700 d. 750*pls do not use excel
- A driller estimates that he has 400 barrels of oil in the ground. The extraction cost is currently $10 per barrel, but is rising at a rate of $1 per year. If the price of oil is $30 per barrel, the driller will produce... a. 10 barrels per year for 40 years b. 20 barrels per year for 10 years c. 20 barrels per year for 20 years d. 40 barrels per year for 10 yearsIn connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the asphalt-mixing plant equipment. The contractor estimates that it will cost $1.25 per cubic yard mile (yd3 –mile) to haul the asphalt-paving material from the mixing plant to the job location. Factors relating to the two mixing sites are as follows: (See pic) The job requires 50,000 cubic yards of mixed-asphalt-paving material. It is estimated that four months (17 weeks of five working days per week) will be required for the job. Compare the two sites in terms of their total costs. Assume that the cost of the return trip is negligible. A) Which is the better site? B) For the selected site, how many cubic yards of paving material does the contractor have to deliver before staring to make a profit if paid $8.35 per cubic yard delivered to the job location?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.