Adidas produces a pair of shoes at a labor cost of 9.00 a pair and a material cost of 8.00 a pair. The fixed charges on the business are 90,000 pesos a month and the variable costs are 4.00 a pair. If the shoe sells at 30.00 pesos a pair, how many pairs must be produced each month for the manufacturer to break-even.
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- A show manufacturer produces a pair of shoes at a labor cost of ₱90 and material cost of ₱80 a pair. The fixed charges of a business are ₱90,000 a month and the variable cost is ₱40 a pair. If the shoes sell for ₱300 a pair, how many pairs must be produced each month by the manufacturer to break -even?A. 1050 B. 1000 C. 1500 D. 1334After closing her beloved restaurant due to the pandemic, Kiki started to sell her signature sauces to consumers. The ingredients for a sauce bottle cost $1.25 and packaging costs another $0.50. A distribution company handles the storage and distribution of the sauce and charges $0.75 or each bottle. Kiki has calculated that the overhead cost is $5000 per month. She sells one sauce bottle at $5.00 to the customers.a. How many sauce bottles must Kikisell to break-even? What is the total revenue for breakeven? (Show all calculations to earn full credit)b. If she can sell only 1000 bottles, what should be the selling price to break-even?Trumps Inc. has developed a chew-proof dog bed-the Tuff Pup. Fixed costs are P 204,000 per year. The average price for the Tuff-Pup is P 36, and the average variable cost is P 22 per unit. Currently, Trumps produces and sells 20,000 Tuff-Pups annually. Required: How many Tuff-Pups must be sold to break-even? If Trumps wants to earn P95,000 in profit, how many Tuff-Pups must be sold? Prepare a variable-costing income statement to verify your answer. Suppose that Trumps would like to lower the break-even units to 12,000. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 12,000 units. (Round to the nearest cent). What is Trumps current contribution margin and operating income? Calculate the degree of operating leverage (round your answer to four decimal places.) If sales increased by 10% next year, what would the present change in operating income be?
- Caltex uses overtime, inventory, and subcontracting to ab-sorb fluctuations in demand. An annual production plan isdevised and updated quarterly. Expected demand, availablecapacities, and costs for the next four quarters are givenbelow. Design a production plan that will satisfy demand atminimum cost.Regular production cost per unit $10Overtime production cost per unit $15Subcontracting cost per unit $20Inventory holding cost per unit per period $ 2 Regular Overtime SubcontractingPeriod Demand Capacity Capacity Capacity1 1500 1000 200 5002 1900 1000 200 5003 500 1000 200 5004 2000 1000 200 500a manufacturer of video cames sells each copy for $21.83. The manufacturing cost of each copy is $14.56. Monthly fixed costs are $8500. During the first month of sales of a new game, how many copies must be sold in order for the manufacturer to break even (that is, in order for the total revenue to equal the total cost)?Pls send me solution fast within 10 min and i will rate instantly for sure!! Solution must be in typed form!! The demand of product A varies with the price as guided by the following equation. Demand = -1.5 * price + 25 Moreover, the sale of product A leads to the sale of another product B of the same company. Additional data is given below: The unit cost of A = Rs 3 Number of units of B with one A = 20 Profit from the sale of one unit of B = Rs 0.85 Develop an Operations Research-based optimization model for the pricing of A to maximize total profit earned and find the optimal price.
- An auto parts maker in Indonesia produces one of the spare parts brands with a daily production rate of 200 units. The company has forecast that the annual demand (D) will be 12,500 units over the next year and the company operates 250 business days per year. The cost of preparing an order is $30 per order, and the cost of maintaining one unit per year is $2. What is the optimal quantity to produce?A part is produced in lots of 1,400 units. It is assembled from2 components worth $70 total. The value added in produc-tion (for labor and variable overhead) is $60 per unit, bring-ing total costs per completed unit to $130. The average leadtime for the part is 8 weeks and annual demand is 3,600 units,based on 50 business weeks per year.a. How many units of the part are held, on average, in cycleinventory? What is the dollar value of this inventory?b. How many units of the part are held, on average, in pipe-line inventory? What is the dollar value of this inventory?(Hint: Assume that the typical part in pipeline inventoryis 50 percent completed. Thus, half the labor and variableoverhead cost has been added, bringing the unit cost to$100, or $70 + $60>2).Bits and Pieces uses overtime, inventory, and subcontract-ing to absorb fluctuations in demand. An annual production plan is devised and updated quarterly. Expected demandover the next four quarters is 600, 800, 1600, and 1900units, respectively. The capacity for regular production is1000 units per quarter with an overtime capacity of 100units a quarter. Subcontracting is limited to 500 units aquarter. Regular production costs $20 per unit, overtime$25 per unit, and subcontracting $30 per unit. Inventoryholding costs are assessed at $3 per unit per period. There isno beginning inventory. Design a production plan that willsatisfy demand at minimum cost.
- Siemens, a German multinational conglomerate and a focused technology corporation headquartered in Munich which manufactures electric motors, has a production capacity of 400 motors a month. The variable cost are P 500 per motor. The average selling price of the motors is P 775.00. Fixed cost of the company amount to P 21,000 per month which includes taxes. The number of motors that must be sold each month to break-even is closest to?Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many units of Item X should be ordered each time? When should Item X be ordered? How much would be Item X's total annual purchasing cost? How much would be Item X's total annual procurement cost? Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? What is Item X's average inventory level? How much would be Item X's total annual storage cost? How much would be Item X's total annual stockout cost? How many times per year would Item X be ordered?Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual i xed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. How much revenue do we need to take in before breaking even? What is the break-even point in units?