Fixed Cost(FC) permonthVariableCost (VC)per unitSellingPrice (S)Break-evenVolume (x)Total VariableCost at Break-per unitper montheven (TVC)per month$8,800.00$23.00$37.00629$14,457.1TotalRevenue (TR)per month atBreak-Even$23,257.1$127,000.00 $470.001,060$589.81$498,200$625,200.$730.00$75.0022$30.00$53.00423☐

a. break even volume = fixed cost/(selling price-variable cost)=8,800/(37-23)=628.57 or 629Total…

Answered: Fixed Cost (FC) per month Variable Cost…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Fixed cost is the difference between total cost and total variable cost. True or False
Franquicias Nororientales, S.A., has some clients that use its process to produceexotic Norwegian dining for clients from all over the world. The cost of operating thefranchised process has a fixed cost of $1,000 per week plus $5 for each unitproduced. Recently, some restaurant owners using the process have beencomplained that the cost model is no longer valid and that the weekly costs are, inactually higher. Your job is to find out if there is strong evidence to supportthe affirmation of the restaurant owners. Obtains a random sample of n = 25restaurants and find out their costs. You also know that the number of units producedin each restaurant it follows a normal distribution with mean μ = 400 and variance σ2 = 625.The average of the weekly costs obtained with the random sample (n = 25) is $3,050.Develop and apply an analysis to find out if there is strong evidence thatconclude that the costs are higher than what the cost model predicts. (Newbolt Exercise 10.58)
Discuss the importance of fixed cost and variable cost with respect to special orders. How might failure to identify a fixed cost impact the decision to accept or reject a special order? Use an example to illustrate.
Suppose a company has fixed costs of $37,400 and variable cost per unit of 1/3x + 222 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 1,356 − 2/3x dollars per unit. Form the cost function and revenue function (in dollars). C(x) = R(x) = Find the break-even points. (Enter your answers as a comma-separated list.) x = Find the vertex of the revenue function. (x, y) = Identify the maximum revenue. $ = Form the profit function from the cost and revenue functions (in dollars). P(x) = Find the vertex of the profit function. (x, y) = Identify the maximum profit. $ = What price will maximize the profit? $ =
Suppose a company has fixed costs of $56,000 and variable cost per unit of 1/3x + 444 dollars, where x is the total number of units produced. Suppose further that the selling price of its product is 2472 − 2/3x dollars per unit. (a) Find the break-even points. (Enter your answers as a comma-separated list.) x = (b) Find the maximum revenue. (Round your answer to the nearest cent.)$ (c) Form the profit function P(x) from the cost and revenue functions. P(x) = Find maximum profit.$ (d) What price will maximize the profit? (Round your answer to the nearest cent.)$
The success of a project depends on the effort level of a worker. In case of successthe revenues will be 400,000 TL whereas in case of no-success the revenues will be 0. The workercan provide a low effort level or a high effort level. The effort level cannot be observed by theprincipal. The worker requires an expected salary of 60,000 TL to provide the low effort leveland an expected salary of 80,000 TL to provide the high effort level. The success probabilitiesfor the project are 40% in case of low effort level and 80% in case of high effort level. Whatshould be the minimum bonus (that is awarded in addition to the base salary in case of success)and the base salary for the worker so that the worker has the incentives to provide the higheffort level?
A company wants to plan production for the ensuing year so as to minimize thecombined cost of production and inventory storage. In each quarter of the year, demand isanticipated to be 65, 80, 135 and 75 respectively. The product can be manufactured duringregular time at a cost of Php 16 per unit produced, or during overtime at a cost of Php 20 perunit. The given table below shows data pertinent to production capacities. The cost of carryingone unit in inventory per quarter is Php 2. The inventory level at the beginning of the firstquarter is zero.
Foggy Optics, Inc. makes laboratory microscopes. Setting up each production run costs $2500.Insurance costs, based on the average number of microscopes in the warehouse, amount to $20 per microscope per year. Storage costs, based on the maximum number of microscopes in the warehouse, amount to $15 per microscope per year. Suppose that the company expects to sell 1600 microscopes at a fairly uniform rate throughout the year. Determine the number of production runs that will minimize the overall expenses for the company. The Number of runs is?

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