Given the cost information below if this firm increases its production and sales from 3 to 4 unites per day given a market price of $2500 per unito the profit margin: Quality produced/day Total Cost 0 $2k 1 $2500 2 $2800 3 $3300 4 $4100 5 $5300 6 $7k a.) will fall b.) will stay the same c.) will increase

Given the cost information below if this firm increases its production and sales from 3 to 4 unites per day given a market price of $2500 per unito the profit margin: Quality produced/day Total Cost 0 $2k 1 $2500 2 $2800 3 $3300 4 $4100 5 $5300 6 $7k a.) will fall b.) will stay the same c.) will increase

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

See similar textbooks

Similar questions

While a firm produces 200 units, the total cost of production is $ 4000. When they increase the output to 220, the cost increases to $ 4200. When the firm produces zero output, the cost is $ 1000. a) What is the fixed cost per unit when they produce 200 units? (ans: $5) b) How much sales would they have to sell at a selling price of $ 10 to make a profit of $ 1000?
based on the information in the table what is marla's profit margin? total revenue-$1,400total cost- $900average cost- $7fixed cost-$700quantity-200
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)
Please answer with details on how to do it. 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. Find the breakeven quantity c) How many units must be sold to maximize profit? What is the company’s maximum profit?
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/ 125, its production cost per unit is US$5.00 and its fixed cost are the same as for company A . How many t-shirts must company B sell to maximise its profit?
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,a. what is the break-even quantity per month?(Hint: for Break-even quantity, COST = REVENUE)b. how many units must be produced each month in order that the net profit equalsthe cost?c. what is the net profit if for a production of 4000 units per month, in pesos?(HInt: PROFIT = REVENUE - COST)
1. A steel bar manufacturer business can make 15000 bar a week. It is determined that to achieve this production, the company need to spend 90000 pesos weekly for materials, utilities and transportation. The manager also pays a fixed cost of 10000 pesos per week. HOW MUCH per steel bar should they sell to gain a profit of 40% of the total cost?
The 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 plant operation has fixed cost of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $70 per unit, and the product sells for $120 per unit. a) What is the annual break even volume of this product? b) Compare annual profit when the plant is operating at 90% capacity with the plant operation at 100% capacity. Assume that the first 90% of capacity output is sold at $120 per unit and that the remaining 10% of production is sold at $100 per unit.
You own an apartment complex with 85 bedroom units. Each unit rents for $1250/mo. Annual costs to operate the complex is $1M. If the vacancy rate is 5%, what profit do you earn per year?
Question 4: Compute the total mixing cost (fixed and variable) from the following graphical information. a = $25000 Total fixed cost b = the variable cost per unit of activity (slope) = $3.0 430 X = Activity level for production = 800 units x Mixed cost =
Martinez Company's relevant range of production is 7,500 units to 12,500 units. The unit costs when it produces and sells 10,000 units are provided in the table. If 12,500 units are sold, what is the variable cost per unit sold? Amount per unit ($) Direct materials 6.00 Direct Labor 3.50 Variable manufacturing overhead 1.50 Fixed manufacturing overhead 4.00 Fixed selling expense 3.00 Fixed administrative expense 2.00 Sales commissions 1.00 Variable adminsitrative expense 0.50