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- If the variable production cost and the price of a product were both reduced by $1.00 per unit, which of the following would change? Group of answer choices break-even point in units contribution margin ratio contribution margin per unit total fixed costsWhen the actual volume of production is higher than the volume of production at the break-even point, then the maximal increase of unit variable costs in order to not cause the loss, can be at the amount of.A) profit per unit B) contribution margin per unitC)gross margin per unitD)fixed cost per unitAssume a learning curve following the power law. If you double the initial cost c(1) of aproduct, the costs of producing an order of 20 units:a. stay the same.b. are reduced by 50 percent.c. are doubled.d. cannot be determined from the given information.
- A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be increased by 10 percent if subcontractors are employed). The plant is normally operated at about 80 percent of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay the skilled workers higher overtime wage rates. For output levels up to 80 percent of capacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above 90 percent and up to 100 percent of capacity, the additional units cost an additional 25 percent over the unit variable costs for outputs up to 80 percent of capacity. For production above 100 percent and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80…The slope of TR and TC are each constant at 10 dollars and 5 dollars respectively and the total fixed cost is 1500 dollars, the breakeven is___________________? The market is [perfect or imperfect]?Analyse the various issues which influence industry standards used in project costmanagement.
- A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be increased by 10 percent if subcontractors are employed). The plant is normally operated at 80 percent capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay the skilled workers higher overtime wage rates. For all output levels up to 80 percent capacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above 90 percent and up to 100 percent capacity, the additional units costs an additional 25 percent over the unit variable costs for outputs up to 80 percent capacity. For production above 100 percent capacity and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80 percent…Suppose an automobile manufacturer has fixed costs equal to $300 million, and variable costs per unit(aka marginal costs) equal to $45,000 per vehicle. Calculate the breakeven quantities at a price of$65,000/vehicle and at a price $50,000/vehicle.Which of the following best defines a sunk cost? A. Costs that have already been incurred and cannot be recovered. B. The variable costs associated with increasing production. C. The total costs including both fixed and variable costs. D. Future costs that are expected to be incurred as a result of current decisions.
- Solve it correctly Q)Transtech sells its product for $100. Marginal cost is a constant $70 per unit and fixed costs are 70,500 what is the breakeven quantity? please specify your answer as an integer what is the breakeven revenue ? please specify your answer as an integer. From the standpoint of the final solution (amount of input used and the resulting amount of output produced): Group of answer choices A: Setting MRP = MFC is the same as setting MR = MC B: MR and MRP are always the same C: MC and MFC are always the same D: All other answers are correctA manufacturing plant has a potential production capacity of 1,000 units per month(capacity can be increased by 10 percent if subcontractors are employed). The plantis normally operated at about 80 percent of capacity. Operating the plant above this level significantly increases variable costs per unit because of the need to pay theskilled workers higher overtime wage rates. For output levels up to 80 percent ofcapacity, variable cost per unit is $100. Above 80 percent and up to 90 percent, variable costs on this additional output increase by 10 percent. When output is above90 percent and up to 100 percent of capacity, the additional units cost an additional25 percent over the unit variable costs for outputs up to 80 percent of capacity. Forproduction above 100 percent and up to 110 percent of capacity, extensive subcontracting work is used and the unit variable costs of these additional units are 50 percent above those at output levels up to 80 percent of capacity. At 80 percent…
