A shoe company manufactures and sells a pair of shoes with the following cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: Expenses types AED Advertising 388,348 Rent 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,000?
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- “Acme Boards” makes and sells skateboards for $240.00. The costs associated with the business include variable costs of $180 per board and fixed costs of $300,000. Determine: The number of skateboards required to sell to breakeven. The profit if they have been selling about 8,000 pr year. a) Now, they are considering undertaking an advertising program with GBC Promotions that would cost $150,000 (additional fixed cost) and increasing the price by $160 to $400. Find the number of skateboards required to sell at $400 and make the same amount of profit as in part “b”. b) What is the % sales decline that can occur in c, to make the same profit as before?Company X has $ 938529 in annual fixed costs. The primary product generates $ 7.98 in revenue per unit and has variable costs of $5.50. The annual breakeven quantity is ____ units.The Asian Transmission Co. makes and sell automotive parts. Present sales volume is 50,000 units a year and selling price is P50.00 per unit. Fixed expenses is P180,000.00 per year and variable cost per unit is P35.00. What is the total profit / loss for the year if only 10,000 are sold? a. P30k b. P30k c. P70k d. P570k
- A company has a production capacity of 500 units per month and its fixed costs are P 250,000 a month. The variable costs per unit are P 1,150 and each unit can be sold for P 2,000. Economy measures are instituted to reduce the fixed costs by 10% and the variable cost be 20%. Determine the old and new break-even point, old and new monthly profit at 100% capacity.The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each, what is the break-even quality per month? (Hint: for Break-even quality, COST = REVENUE)Ella Ltd recently started to manufacture and sell productDG. The variable cost of product DG is £4 per unit and the totalweekly fixed costs are £18 000.The company has set the initial selling price of product DG byadding a mark up of 40 per cent to its total unit cost. It has assumedthat production and sales will be 3000 units per week.The company holds no stocks of product DG.Required:(a) Calculate for product DG:(i) the initial selling price per unit; and(ii) the resultant weekly profit. The management accountant has established that alinear relationship between the unit selling price (P in £)and the weekly demand (Q in units) for product DG isgiven by:P = 20 - 0:002QThe marginal revenue (MR in £ per unit) is related to weeklydemand (Q in units) by the equation:MR = 20 - 0:004Q(b) Calculate the selling price per unit for product DG that shouldbe set in order to maximize weekly profit. (c) Distinguish briefly between penetration and skimming pricingpolicies when launching a new…
- 2-19. Acellphonecompanyhasafixedcostof$1,500,000 per month and a variable cost of $20 per month per subscriber. The company charges $39.95 per month to its cell phone customers. (2.2) a. What is the breakeven point for this company? b. The company currently has 73,000 subscribers and proposes to raise its monthly fees to $49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10,000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable? 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.I have a question about the following question. What is the annual breakeven production quantity (use above data, show work)? IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon. Fixed costs (per year) Variable Costs per gallon Rent: $18000 Glycol: $1.50 Utilities: 13200 FreezeFree 312: .50 Managerial salaries: 20000 Mfg labor: .20 Flammability permit: 12000 Packaging: .20 Other fixed expense: 2400 Inert ingredients: .60 Total fixed: $65600 Advertising: .30 Total: $3.30BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.
- If company A manufactures t-shirts and sells them to retailers for US$9.80 each. It has fixed costs of $2625 related to the production of the t-shirts, and the production cost per unit is US$2.30. Company B also manufactures t-shirts and selll them directly to consumers. The demand for its product is p = 15 - (x /25) , its production cost per unit is US$5.00 and its fixed cost are the same as for company A. Revenue function for company A = R(x) = 9.8x Cost function for company A = C(x) = 2625+2.3x Profit function for company A = π(x) = 7.5x -2625 (iv) Using a spreadsheet, create a table for showing x, R(x)?, C(x) for company A in the domain x = 50, 100, 150, 200, 250, 300, 350, 400, 450. (v) Graph the functions from (iv) above on the same axes. (vi) From your graph, determine the break-even level of output for company AThe fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are 60% of the annual revenue. If annual revenue is $300,000, the annual profit/loss is most nearly which answer below? (a) $66,000 profit (b) $66,000 loss (c) $80,000 profit (d) $80,000 loss.A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC a) Develop the equations for the total cost and total revenue. b) Find the breakeven quantity c) How many units must be sold to maximize profit? d) What is the company’s maximum profit?