If the variable cost of Machine #1 is increased by $0.30 per box, what is the new breakeven point for Machine #1? A. 5x 107 boxes 23. B. 3.6 x 107 boxes C. 2.5 x 107 boxes D. 2 x 107 boxes If the fixed cost of Machine #2 was increased to $2 x 107, what must the variable cost be such that the breakeven point remains the same? A. $1.50 / box B. $1.00 / box C. $0.50 / box D. $0.25 / box If the selling price is decreased by $0.25 per box, how many boxes would need to be produced for Machine #1 to breakeven? A. 2.1 x 107 boxes B. 3.3 x 107 boxes 24. 25. C. 4.2 x 107 boxes D. Machine #1 would breakeven at a point more than 5 x 107 boxes

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
23.
If the variable cost of Machine #1 is increased by $0.30 per box, what is the
new breakeven point for Machine #1?
A. 5 x 107 boxes
B. 3.6 x 107 boxes
C. 2.5 x 107 boxes
D. 2 x 107 boxes
24.
If the fixed cost of Machine #2 was increased to $2 x 107, what must the
variable cost be such that the breakeven point remains the same?
A. $1.50/box
B. $1.00/box
C. $0.50 / box
D. $0.25/box
25.
If the selling price is decreased by $0.25 per box, how many boxes would
need to be produced for Machine #1 to breakeven?
A. 2.1 x 107 boxes
B. 3.3 x 107 boxes
C. 4.2 x 10 boxes
D. Machine #1 would breakeven at a point more than 5 x 107 boxes
Transcribed Image Text:23. If the variable cost of Machine #1 is increased by $0.30 per box, what is the new breakeven point for Machine #1? A. 5 x 107 boxes B. 3.6 x 107 boxes C. 2.5 x 107 boxes D. 2 x 107 boxes 24. If the fixed cost of Machine #2 was increased to $2 x 107, what must the variable cost be such that the breakeven point remains the same? A. $1.50/box B. $1.00/box C. $0.50 / box D. $0.25/box 25. If the selling price is decreased by $0.25 per box, how many boxes would need to be produced for Machine #1 to breakeven? A. 2.1 x 107 boxes B. 3.3 x 107 boxes C. 4.2 x 10 boxes D. Machine #1 would breakeven at a point more than 5 x 107 boxes
8
Total Cost (TC) or Revnue (R) [$] x 107
w
N
5
O
Revenue (R) [$]
... Cost Machine 1 (TC) [$]
--Cost Machine 2 (TC) [$]
2
1
New Machine Purchase Justification
4
5
6
Number of boxes (N) [--] x 10²
3
Transcribed Image Text:8 Total Cost (TC) or Revnue (R) [$] x 107 w N 5 O Revenue (R) [$] ... Cost Machine 1 (TC) [$] --Cost Machine 2 (TC) [$] 2 1 New Machine Purchase Justification 4 5 6 Number of boxes (N) [--] x 10² 3
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