A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A)  Which alternative has the lowest break-even quantity? (B)  Which alternative will produce the highest profits for an annual output of 10,000 units? (C)  Which alternative would require the lowest volume of output to generate an annual profit of $50,000?

Q: If fixed costs are $255,000, the unit selling price is $33, and the unit variable costs are $15, the…

A: Breakeven sales revenue is that level of sales revenue at which the business is only recovering its…

Q: if a product total fixed cost is 50,000 and its variable cost is 28500 for 9500 units what should be…

A: Variable costs per unit = Total variable cost / no. of units  = 28500/9500 = 3 per unit

Q: The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or…

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs,…

A: Contribution per unit=Sale per unit-variable cost per unit=$34-$14=$20

Q: Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an…

A: At break even point  Fixed cost = contribution

Q: If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even point if…

A: Formula: Break even point = Fixed cost / Contribution margin

Q: A firm is trying to decide between two location alternatives, Albany and Baltimore. Albany would…

A: Particulars Alternative A ($) Alternative B ($) Sales @ 9,000 units 450,000 432,000 Less: Labor…

Q: A company is considering a project with a breakeven point of 18,000 units. The selling price is $22…

A: Formula:

Q: Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price…

A:

Q: If fixed costs are $287,000, the unit selling price is $31, and the unit variable costs are $21, the…

A: At break-even sales units, there is no profit or loss to the entity. It is a level of sales where…

Q: If fixed costs are $276,000, the unit selling price is $117, and the unit variable costs are $76,…

A: Given the following information: Question 1): Fixed costs: $276,000 Selling price per unit: $117…

Q: If fixed costs are $1,262,000, the unit selling price is $210, and the unit variable costs are $124,…

A: Break even sales point is that point at which company is only covering its fixed costs and variable…

Q: 20. if fixed costs are $262,000, the unit selling price is $32, and the unit variable costs are $21,…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: A company needs to sell 15,000 units of its only product in order to break even. Fixed costs are…

A: Margin of safety = Total sales - Break even sales

Q: Which alternative has the lowest break-even quantity

A: Break-Even quantity is the measure of units that must be produced and sold such that the revenue is…

Q: If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54,…

A: Break-even point refers to the point where the number of units sold is just sufficient to cover the…

Q: The total fixed costs are $1,500,000 and the unit variable costs are $200,000. If the company…

A: The profit is difference between the revenue earned and fixed cost and variable cost of the product.…

Q: If fixed costs are $260,000, the unit selling price is $74, and the unit variable costs are $55, the…

A: Break even units = Fixed cost/ Contribution per unit Contribution per unit= Sales price - Variable…

Q: The MBF factory has a total cost of 45,000 units if it produces 500 products, and a total cost of…

A: Fixed costs are the costs that a company has to bear regardless of how much revenue it gathers.…

Q: 1. A company is considering a project with a cash break-even point of 14,500 units. The selling…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: If the selling price is $32 per unit, the variable cost is $24 per unit, and total fixed cost is…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: If fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20,…

A: Formula for Break even point: Break even point = Fixed cost / (Selling price - Variable cost)

Q: Sloan Corporation has the following estimates for its new gear assembly product: Price per unit =…

A: There are many factors which effect the profitability of the company. Every company estimates its…

Q: A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two…

A: a) The computation of break-even point is as follows: Hence the break even point for alternative A…

Q: A firm is considering two location alternatives. At location A, fixed costs would be $4,000,000 per…

A: Alternative A: Fixed Cost = $4,000,000 Variable Cost = $0.30 per unit Expected annual demand = 9…

Q: Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price…

A: given, units = 71,000 price = $1080 per unit variable cost = $300 per unit fixed cost = $4.81…

Q: Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs,…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: You want to start a firm whose output you believe you can sell for $25 per unit. The operation will…

A: Given information: Fixed costs amounted to $130,000 Selling price per unit is $25 Variable cost per…

Q: If fixed costs are $ 500,000, the unit selling price is $55, and the unit variable costs are $30,…

A: Break-even Point:   It refers to a point in the level of operations at which a company experiences…

Q: Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the…

A: Break-even point(BEP):  It is a point where there would be no profit or no loss which means that the…

Q: Currently the unit selling price of a product is $200, the unit variable cost is $110, and the total…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: If fixed costs are $235,000, the unit selling price is $125, and the unit variable costs are $75,…

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: In linear breakeven analysis, if process A has a variable cost of $45 per unit and process B has a…

A: Breakeven point is the point where the total cost matches the total revenue. There is no situation…

Q: The Can-Do Co. is analyzing a proposed project. The company expects to sell 12,000 units, give or…

A: Sensitivity analysis calculates the effect on the outcome by changing one input variable at a time.

Q: What is the fixed cost per unit at the break-even point?

A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…

Q: Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price…

A: The best-case scenario is when the sales are highest possible with the cost lowest possible. And the…

Q: How do I find the number of units that must be sold to break-even when the maximum capacity with…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Currently, the unit selling price of a product is $340, the unit variable cost is $280, and the…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110,…

A: Break even point is where there is no profit and no loss situations and the all cost are covered…

Q: c. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of…

A: The operating profit of a corporation is the entire earnings from its core business tasks for a…

Q: If fixed costs are $332,000, the unit selling price is $74, and the unit variable costs are $53, the…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: If fixed costs are $1,450,000, the unit selling price is $205, and the unit variable costs are $128,…

A: Break even point in units = Fixed costs / Contribution margin per unit Where,…

Q: If fixed costs are $250,000, the unit selling price is $73, and the unit variable costs are $47, the…

A: The break even sales are calculated as fixed cost divided by contribution margin per unit.  The…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of Safety:- It is the difference in the intrinsic value and the market value of the stock. It…

Q: Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B,…

A:

Q: 0. If fixed costs are $262,000, the unit selling price is $32, and the unit variable costs are $21,…

A: Break-even sales are the sales at a level when there is no profit no loss. When the fixed cost or…