Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?

Markland Manufacturing intends to increase capac-ity by overcoming a bottleneck operation by adding new equip-ment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variablecost for A is $12.00, and for B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

Using the data in "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?a) What is the brea k-even point in dollars for proposal A if youadd $10,000 installation to the fixed cost?b) What is the break-even point in dollars for proposal B if youadd S l 0,000 installation to the fixed cost?
Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
Eastman Publishing Company is considering publishing an electronic textbook on spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and Web site construction is estimated to be $160,000. Variable processing costs are estimated to be $6 per book. The publisher plans to sell access to the book for $46 each. a. What is the break even point? b. what profit or loss can be anticipated with a demand for 3800 copies c. Wiht a 3800 copy demand, proced at $50.95 , what profit or loss can be expected?
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation byadding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are$50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenuegenerated by each unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?
What volume (units) of output would the two alternatives yield the same profit? "Sroufe Manufacturing intends to increase capacityby overcoming a bottleneck operation by adding new equipment.Two vendors have presented proposals. The fixed costs for proposalA are $50,000, and for proposal B, $70,000. The va riablecost for A is $12.00, and fo r B, $10.00. The revenue generated byeach unit is $20.00.a) What is the break-even point in units for proposal A?b) What is the break-even point in units for proposal B?"
A). A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $150 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year? B). A newly opened bed-and-breakfast projects the following: Monthly fixed costs $10,000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 How many rooms would have to be occupied per month in order to break even?
Stapleton Manufacturing intends to increase capac-ity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, andfor proposal B, $34,000. The variable cost for A is $10, and for B,$14. The revenue generated by each unit is $18. a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternative shouldbe chosen?
Stapleton Manufacturing intends to increasecapacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is$65,000, and for proposal B, $34,000. The variable cost for A is$10, and for B, $14. The revenue generated by each unit is $18.a) What is the crossover point in units for the two options?b) At an expected volume of 8,300 units, which alternativeshould be chosen?
mafTech is a local companv assembles smart devices parts to various manutacturersproducing smartphones and computersLast year it had cost of goods sold of RM88.700 Million, the averageproduction materials and parts are RM1.333 Million, Work in progress atRM7.555 Million, and finished goods at RM5.999 Million. Define theaverage aggregate value, and Analyze the company's inventory turnsand days of supply being held in inventory.
Zen product wants to decide whether to make-or buy an accessory item for one of ther products. It is projected that this item will sell for 515 each If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have two choices Process A requires an investment of $120,000 for design and equipment, but results in a $4 per unit cost. Process B requees only a $100,000 investment, but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 50% chance that they will sell 0.000 units, and a 50% chance that they will sell 100,000 units Draw the decision tree approptiate to the alternatives and outcomes stated. Using decision trees and EMV, what is their best choice?
Jubelien and Joshua have joined forces to start Rosen old Lettuce Products, a processor ofpackaged shredded lettuce. Jubelien has years of food processing experience and Joshua hasextensive commercial food preparation experience. Together with the help from vendors, theycan adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag oflettuce. They think a largely manual process will have monthly fixed cost of 37,500Php andvariable cost of 1.75Php per 5-pound bag. A more mechanized process will have fixed costs of75,000Php per month with variable costs of 1.25Php per 5-pound bag. They expect to sell theshredded lettuce for 2.50Php per 5-pound bag.a. What is the break-even quantity for the manual process?b. What is the revenue at the break-even quantity for the manual process?c. What is the break-even quantity for the mechanized process?d. What is the revenue at the break-even quantity for the mechanized process?e. What is the monthly profit or loss of the…
The Excellent DVD Company sells DVDs for $62 each. Manufacturing cost is $22.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price. The fixed cost of preparing the DVDs is $227 300. Capacity is 20 000 DVDs.a) Draw a detailed break-even chart. b) Compute the break-even point(i) in units;(ii) in dollars;(iii) as a percent of capacity.c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD.d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.