A company with a capacity of 3,000 units a month has fixed costs of P1,500 a month and labor costs of P10 a unit. Material costs are P5 per unit. The company has been producing at 80 percent of capacity and selling its product for P20. 1What would its net income be at 100 percent at capacity
Q: Determine the optimum plant size for this industry.
A: In the long run optimum output level is determine by AVC=MC
Q: monthly salary of P9, 000. She also works 4 hours every Saturday as a swimming trainer and is paid…
A: here tge total income is supposed to be calculated for a month
Q: Company A produces a product called Gen, which is a type of tyre The following is the information…
A: The detailed solution to the given question is given in Step 2.
Q: The data collected in running a machine, the cost of which is Rs 60,000 are given below: Year 1 2 3…
A: The data collected in running a machine, Year 1 2 3 4 5 Resale Value 42,000 30,000 20,400…
Q: Company XYZ is a farming company. The company are famous for producing strawberries and blueberries.…
A: For this question, we would calculate the break-even quantities for the boxes of blueberries. Here,…
Q: A small candy shop is preparing for the holiday season. The owner must decide how many bags of…
A:
Q: Medaas Electronics is a fictional producer of laser printers. The company's production planner,…
A:
Q: A brewery produces regular beer and a lower-carbohydrate Tight beer. Steady customers of the brewery…
A: R = units of regular beer L= units of light beer Minimize C = 32000 R + 60000 L…
Q: An airline offers coach and first-class tickets. For the airline to be profitable, it must sell a…
A: Given Information: Minimum quantity of first-class tickets to be sold = 25 Minimum quantity of…
Q: Eades Corp. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The…
A: The YTM is based on the belief or understanding that an investor purchases the security at the…
Q: a) Find an optimal solution to Western's problem. What is the production plan, and what is the…
A: Note: - As per the Bartleby guidelines, only the first three parts have been answered. The optimal…
Q: For a construction job, a contactor can haul rock by means of an ordinary 10-cubic-yard dump truck,…
A: Given data:
Q: Telsla produces a range of electric car models. The following presents hypothetical information in…
A: An optimal blend amplifies the potential unit deals while keeping up with - or in a perfect world…
Q: A manufacturing company makes two types of water skis, a trick ski and a slalom ski The relevant…
A: Given data: Department Labour-Hours per Ski Maximum Labor Hours Available per Day Trick Ski…
Q: 2. Mina's Craft Shop manufactures two products in two departments. Product X1 contributes PHP60 and…
A: Decision Variables: Suppose-X be the no. of units of Product X1Y be the no. of units of Product X2…
Q: The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans.…
A: Determine the constraints:
Q: A local factory assembling calculators produces 400 units per month and sells them for P1,842 each.…
A: Production = 400 units per month Selling price (P) = P1842 per unit Fixed cost (F) = P50825 Variable…
Q: A machine part to be fabricated may be made from alloy of either of two metals. There is an order…
A: Therefore, the total cost is P13,300 for Metal A and P8,950 for Metal B.
Q: d. Suppose one of the workers in the assembly department is also trained to do finishing. Would it…
A: Worker shift from Assembly department to Finishing department: As per the given…
Q: n problem 1.1, how much would sales have to increase to provide the same increase in profi
A: Strategies are the process of planning and directing in order to achieve long term goals and…
Q: The Johnny Ho Manufacturing Company inColumbus, Ohio, is putting out four new electronic components.…
A: Formula:
Q: The demand of products per day for three days are 21, 19, 22 units and their respective…
A: Below is the solution:-
Q: Easy-Tech Soft ware Corporation is evaluating theproduction of a new soft ware product to compete…
A: It is given that the new software production is being evaluated for competing with a popular…
Q: The Johnny Ho Manufact uring Company in Columbus, Ohio, is putting out four new electronic…
A: A Small Introduction about Manufacturing Cost Manufacturing cost is the number of costs of all…
Q: 6. The selling price of sand per cubic meter is Php75, how much is the price of the sand that has a…
A: The above questions are from the topic: Volume The answers to the questions is given below:
Q: Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for…
A: Below is the solution:-
Q: A car company is planning the introduction of a new electric car. There are two options for…
A:
Q: As a prospective owner of a club known as the Red Rose, you are interested in determining the volume…
A: Given data; Products Selling price Variable cost Beer 2.00 1.25 Meals 12.00 5.00 Desserts…
Q: 1. Cox Electric makes electronic components and has estimated the following for a new design of one…
A: Given - Fixed cost = $24,375 Material cost per unit = $0.17 Labor cost per unit = $0.12 Revenue…
Q: As a prospective owner of a club known as the Red Rose, you are interested in determining the volume…
A: Products Selling price Variable cost Contribution margin Contrbution margin ratio No. of units sold…
Q: A handicraft products trader is selling leather cases for $40 the unit. To run his business, he…
A: 1) If the trader plan to import the product from one country then that will be malayasia because the…
Q: A mining company brings up a land purchase project for 61,000 TL. in order to extract coal. The…
A: The answer is as below:
Q: Cluck Farms, Inc. produces a crop of chickens at a total cost of $66,000. The production generates…
A: Incremental Revenue = 60000 x (2.75-1.50) = $ 75000
Q: Fitzhugh Company has the following information available for the current year: Standard: 3.5 feet…
A: (a) Material purchase price variance = (Actual unit cost - standard unit cost) x Actual quantity…
Q: In one fiscal year, firm B has ROA (return on asset) of 5%, and they borrow a substantial amount of…
A: Return of Assets can be defined as the net income divided by the average assets., whereas the Return…
Q: mix of Peanut/Raisin Delite to put up. The deluxe mix has .70 pounds of raisins and .30 pounds of…
A: Expected profit
Q: The cost for a 200-horsepower pump with a VFD controller is $42,000. The cost estimate of a similar…
A:
Q: Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she…
A: The proposed mixed-integer programming model can be straightforwardly addressed by the blended…
Q: Assuming your company is producing Apple and Samsung phone cases. It is required to process in the…
A: Decision variables: Suppose-A = No. of Apple phone cases to be producedS = No. of Samsung phone…
Q: which method is better and by how much
A: Process selection strategy mainly depends on the net profit turnover which identify based on the…
Q: As a supervisor of a production department, you must decide the daily production totals of a certain…
A: Decision variables : Let D and S is the quantity to produce of Deluxe and Special product…
Q: SureStep is currently getting 160 regular-time hours from each worker per month. This is actu-ally…
A: In the above case it is given that Surestep is getting 160 regular time hours from every worker…
Q: A manufacturing fi rm has discontinued production of a certain unprofi table product…
A: Let X1 be the number of product X1 X2 be the number of product X2 X3 be the number of product X3
Q: The ore of a gold mine in the Itogon Benguet, on the average, 1Kgram of gold per 10 ton. One method…
A: Given- Gold Recovers from 1st method = 85% = 0.81 Gold Recovers from 2nd method = 90%= 0.90 Sell…
Q: If the firm does not add new equipment, its profit will be =_____ dollars (round your response to…
A: Profit is the final gain earned after the deduction of total expenditures from the total income.
Q: Consider a three-units system presented by the cost function as: C1 = 0.03 P12 + 8.2P1 + 452 C2 =…
A: Given cost function, C1 = 0.03 P12 + 8.2P1 + 452C2 = 0.025 P22 + 8.3P2+ 500C3 = 0.0035 P32 + 7.44P3…
Q: The cost per day of running a hospital is 200,000 10.5x2 dollars, where x is the number of patients…
A: cost equation is: C(x) = 200,000 + 0.5 x2 For x = 300 we get, C(300) = 200000 + 0.5 (3002) C(300) =…
Q: A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the…
A: Decision Variable: Suppose- R be the no. of units of regular beer to be producedL be the no. of…
- A company with a capacity of 3,000 units a month has fixed costs of P1,500 a month and labor costs of P10 a unit. Material costs are P5 per unit. The company has been producing at 80 percent of capacity and selling its product for P20.
- 1What would its net income be at 100 percent at capacity
- 1.2What would its net income be at 120 percent of capacity if it is assumed that 20 percent more products could be produced on overtime at an extra P3 labor cost per unit for all production above 100 percent?
Step by step
Solved in 2 steps
- Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost 16x. Each unit of Wozac is sold for 3. Each unit of Wozac produced incurs a variable production cost of 0.20. It costs 0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.It costs a pharmaceutical company 75,000 to produce a 1000-pound batch of a drug. The average yield from a batch is unknown but the best case is 90% yield (that is, 900 pounds of good drug will be produced), the most likely case is 85% yield, and the worst case is 70% yield. The annual demand for the drug is unknown, with the best case being 20,000 pounds, the most likely case 17,500 pounds, and the worst case 10,000 pounds. The drug sells for 125 per pound and leftover amounts of the drug can be sold for 30 per pound. To maximize annual expected profit, how many batches of the drug should the company produce? You can assume that it will produce the batches only once, before demand for the drug is known.The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
- Lemingtons is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemingtons works as follows. At the beginning of the season, Lemingtons reserves x units of capacity. Lemingtons must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for 160 and Hudson charges 50 per dress. If Lemingtons does not take delivery on all x dresses, it owes Hudson a 5 penalty for each unit of reserved capacity that is unused. For example, if Lemingtons orders 450 dresses and demand is for 400 dresses, Lemingtons will receive 400 dresses and owe Jean 400(50) + 50(5). How many units of capacity should Lemingtons reserve to maximize its expected profit?If a monopolist produces q units, she can charge 400 4q dollars per unit. The variable cost is 60 per unit. a. How can the monopolist maximize her profit? b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)? c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.A plant operation has a fixed costs of $2,000,000 per year and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit and the product sells for $90 per unit. Compare annual profit when the plant is operating at 90% of capacity with the plant operation at 100% capacity. Assume that the first 90% of capacity output is sold at $90 per unit and that the remaining 10% of production is sold at $70 per unit.
- Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2.9-MGD tower is $153,200. The exponent in the cost-capacity equation is 0.47. The cost of a 0.75 million gallon per day induced-draft packed tower is $Box Electric makes electronic components and has estimated the following for a new design of one of its products. Fixed cost = $24,975 Material cost per unit = $0.17 Labor cost per unit = $0.12 Revenue per unit = $0.66 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Box Electric sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Construct an appropriate spreadsheet model to find the profit based on a given production level and use the spreadsheet model to answer these questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = the total cost, yielding a profit of zero. Vary production volume from 0 to 100,000 in increments of 10,000.…An electronics firm is currently manufacturing anitem that has a variable cost of $.50 per unit and a selling priceof $1.00 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The firm can substantially improve the productquality by adding a new piece of equipment at an additional fixedcost of $6,000. Variable cost would increase to $.60, but volumeshould jump to 50,000 units due to a higher-quality product.Should the company buy the new equipment?
- An electronics firm is currently manufacturing an item that has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $15,000. Current volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $5,600. Variable cost would increase to $0.65 and the selling price would be revised to $1.30 with the expectation that the volume would be 50,000 units as a result of a higher-quality product. If the firm does not add new equipment, its profit will be =_____ dollars (round your response to the nearest whole number and include a minus sign if the profit is negative).For a table manufacturing company, selling price for a table is $183.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,380.00 per month and insurance is $296.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $254.00 per Unit, Variable cost to $43.00 per Unit, bigger area will have rent $5,235.00 per month and insurance is $362.00 per month At what point will the company be indifferent between the current mode of operation and the new option?The Elastic Firm has two products coming on the market, Zigs and Zags. To make a Zig, the firm needs 10 units of product A and 15 units of product B. To make a Zag, they need 20 units of product A and 15 units of product B. There are only 2,000 units of product A and 3,000 units of product B available to the firm. The profit on a Zig is R4 and on a Zag it is R6. Management objectives in order of their priority are: (1) Produce at least 40 Zags. (2) Achieve a target profit of at least R750. (3) Use all of the product A available. (4) Use all of the product B available. (5) Avoid the requirement for more product A. Formulate this as a goal programming problem.