please solve both parts A vehicle accessory shop is considering buying a new style of wheels for $103 00 and selling them at $234 00 for each wheel Fixed costs related to this new style ofwheel amount to$492 00 It is estimated that 33 wheels per month could be sold.(a) How many wheels must they sell to break even?(b) How much profit will the accessory shop make each month?CED(a) The shop must sellwheels to break even(Round up to the nearest unit)

When firms operate in a market, they incur different types of costs. Fixed costs and variable costs…

A vehicle accessory shop is considering buying a new style of wheels for $193 00 and seling them at $234 00 for each wheel Fxed costs related to this new style of wheel amount to $492 00 t is estimated that 33 wheels per month could be sold (a) How many wheels must they sell to break even? (b) How much profit will the accessory shop make each month?

A vehicle accessory shop is considering buying a new style of wheels for $193 00 and seling them at $234 00 for each wheel Fxed costs related to this new style of wheel amount to $492 00 t is estimated that 33 wheels per month could be sold (a) How many wheels must they sell to break even? (b) How much profit will the accessory shop make each month?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

A company has a production capacity of 1100 units a year and its fixed costs are P60k. The variable cost per unit is P500 & each unit can be sold for P800. What if fixed costs is increased to P75k and the variable costs is reduced by 20%, what is new break-even point in units. A. 198 B. 188 C.178 D. 180
BVM 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.
A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.
A car is needed for three years. Plans A and B for acquiring the car are being evaluated. An effective annual interest rate of 10% is to be used. Which plan is economically superior? Plan A: Lease the car for $0.25/mile (all inclusive) Plan B: Purchase the car for $30,000. Keep the car for three years. Sell the car after three years for $7200. Pay $0.14 per mile for oil and gas. Pay other costs of $500 per year.
A material handling system was purchased 3 years ago for $120,000. Two years ago it required substantial upgrading at a cost of $15,000. It once again is requiring an upgrading cost of $25,000. Alternately, a new system can be purchased today at a cost of $200,000. The existing machine could be sold today for $50,000. In an economic analysis, what first cost should be assigned to the existing system? (a) $50,000 (b) $65,000 (c) $75,000 (d) $80,000
The Cornballer, invented by George Bluth in the mid-1970s, is a device used to make cornballs. Itsold for $29.95. Suppose that 10,000 Cornballers were sold in 1981; 11,000 in 1982; and salesincreasing by 10% each year until it was last sold in 1990 (when it was made illegal). Assume aninterest rate of 12% per year. Assume sales were made at EOY. What was the worth of these cashflows in 1980? Show in standard factor notation and show the cash flow diagrams.
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 owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many new products must be sold in order to break even point?
A high voltage gloves manufacturer produces a pair of gloves at labor cost of 15 and a material cost of 40 a pair. The fixed charges on the business are 90,000P a month and the variable cost are 15 a pair. If the gloves sell for 160 a pair, how many pairs must be produced per month by the manufacturer to break-even?
A vertical oil well has been drilled and completed. The productive zone is between the depths of 2,800 and 2,900 feet, you can assume there is oil in the entire thickness (gross = net). The average porosity is 10%, average water saturation is 20% and the oil formation volume factor is 1.3 RB/Stb. Other reservoirs with similar properties have drainage areas of 40 acres and the recovery factor 10.47305% (it is known with extreme precision!) a) Compute STOIIP and ultimate recovery, using the formals presented in lecture b) This well will also have a gas oil ratio (GOR) of 800 scf/bbl, how much gas is expected to be produced from this well?
A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost Method
(engineering economic) A contractor gets a large project that is expected to last for 10 years, during which the project takes a special tool that he does not have. There are two offers of tools to the contractor, both of which can meet their needs, namely: Determine which tool is more profitable to buy based on i = 15% by using: a. Annual Value Analysis with repeatability assumption b. Annual Value Analysis with the purchase price of alternative X at the time of replacement there is an increase of 20%