annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: 1. Find the break-even point in units. 2. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.)

annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: 1. Find the break-even point in units. 2. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Given data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars Variable Manufacturing Cost per unit = 13 Variable Selling Cost per unit = 5 Selling Price per unit = 35. Compute (a) the break-even point in terms of sales value (b) number of units that must be sold to earn a profit of 80,000 dollars
Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50.a. What is the break-even point?b. How many units must be sold to make a proi t of $500.00?c. How many units must be sold to average $0.25 proi t per unit? $0.50 proi t per unit?$1.50 proi t per unit?
Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. a. What is the break-even point? b. How many units must be sold to make a proi t of $500.00? c. How many units must be sold to average $0.25 profit per unit? $0.50 profit per unit? $1.50 proi t per unit?
The publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $100,000 Average Variable Cost $ 20 Selling Price $ 30 a) Determine the breakeven output and total sales revenues. b) Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level. c) If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000. d) Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. e) Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.
At the break-even point of 2000 units, variable costs are $55000, and fixed costs are $32000. How much is the selling price per unit? $11.5 $43.5 $16 $27.5
ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000.1. What is the break – even sales volume of the product per year?2. What is the profit per year based on the present production – sales status?3. What is the loss if only 150 units were produced and sold in a year?
Determine the breakeven point in terms of number of units produced per month and draw its corresponding break-even chart using the following data:➢ Selling price/unit 600 PhP➢ Total monthly overhead expenses 428,000 PhP➢ Labor cost 115 PhP➢ Cost of Materials 76 PhP➢ Other variable 2.32 Php
44show complete solution, final answer should be in two decimal only, i will automatically give upvote.
Michelin is considering going ‘‘lights-out’’ in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $590,000per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $2,250,000, with $93,000 per year operational costs and will replace all the manual effort described above. The planning horizon is 8 years, and there will be a $275,000 salvage value at that time for the new technology. Marginal taxes are 25%, and the after-tax MARR is 10%. The new investment relates to the 7-Year Property Class. Part a Determine the annual cost of purchasing the new technology. $enter a dollar amount Carry all interim…
A steam boiler is required as part of the design of a new plant. The types of fuel that can be used to ignite the boiler are natural gas, fuel oil, and coal. The cost of installation including all required controls is $40,000 for natural gas, $50,000 for fuel oil, and $120,000 for coal. In addition, the annual cost of fuel oil is $8,000 less than the annual cost of natural gas and $12,000 more than the annual cost of coal. The boiler is to be utilized for 20 years and interest rate is 8%. Using the most suitable approach, determine the best alternative. Is there any other consideration for the obtained result? As one way, please solve using either Cash Flow Analysis, Present Worth Analysis, or any other similar method. As a second way, use Excel software and include all required command statements require to solve it.
ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill operations. Design A will require 12 hours of lathe time and 5 hours of drill time per 1,000 units. Design B will require 7 hours of lathe time and 8 hours of drill time per 1,000 units. The variable operating cost of the lathe, including labor, is $18.60 per hour. The variable operating cost of the drill, including labor, is $16.90 per hour. Finally, there is a sunk cost of $5,000 for Design A and $9,000 for Design B due to obsolete tooling. a. Which design should be adopted if 125,000 units are sold each year?b. What is the annual saving over the other design?
SHOW COMPLETE SOLUTION PLS BADLY NEEDED ASNWERS