Answered: Material costs $16.50 Labor costs 6.00…

Business

Economics

Material costs $16.50 Labor costs 6.00 Overheads 15.00

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 22SQ

See similar textbooks

Related questions

Q: 1. Use the first four steps of the decision-making process to generally describe the alternatives…

A: A process of making a clear option on what is the best alternative to make a decision is…

Q: The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an…

A: PED (Price elasticity of demand) depicts the responsiveness of change in the quantity demanded as a…

Q: A specialized auto part manufacturer, XYZ Auto Parts, is bring threatened by heavy competition and…

A: Break even point = Fixed costs ÷ (Sales price per unit - Variable costs per unit) Break even point =…

Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…

A: Given, The total revenue earned by Ruth Brennan from business = $320,000 Cost of purchases -…

Q: The break-even point is the sales level at which total sales equal total costs, resulting in zero…

A: A break-even is the point at which a company has neither a profit nor a loss.

Q: You get a discount on items when you order 500. The price of the item is $10 if you order less than…

A: Economic order quantity is positively related to the annual demand. It means as annual demand rises…

Q: Five years ago, Arlington Industries expanded vertically by acquiring one of its suppliers, Raddix…

A: Formula for unit contribution margin is, Unit contribution margin = Sales per unit - Total variable…

Q: The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase…

A: Incremental returns refers to the returns on investments over the course of investment period. Net…

Q: A manufacturer's total cost equation per day is given by the equation TC = 440 +4q+,00010². If each…

A: Given : Total Cost = 440+4q+0.0001Q2 Price = 10-0.0004Q

Q: WA waste disposal company is considering getting into bio-disposal business. The incinerators cost…

A: Fixed costs refers to that expenses that do not change depending on how much is produced. Interest…

Q: TOSSEK Manufacturing is a company offering a variety of electric scooters utilizing lithium iron…

Q: Following is the information of a product of a firm: Selling price per unit = $60; Variable…

A: fixed costs, also known as indirect costs or overhead costs, are business expenses that are not…

Q: During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer),…

A: 1. In following manner, selection may be impacted by the non-monetary considerations: The…

Q: South Plains Manufacturing Inc. must select a process for its new product, TT2, from among three…

A: P(a) P(b) P(c) FC 10,000 20,000 30,000 VC in units $80 $95 $120

Q: If the firm made total sales of $999 million (mn) in 2020, spent $197 mn on inputs and $193 mn on…

A: Net Profit margin is a measure to calculate the profit , so here we calculate the Net Profit Margin…

Q: On September 2, 2021, the Malaysian government set a ceiling retail price of RM19.90 for COVID-19…

A: In a competitive market, the equilibrium price and quantity of a good are determined at a point…

Q: A manufacturing company leases a building for $110,000 per year for its manufacturing facilities. In…

A: A firm's profit refers to the portion of its total revenue left over after all of its expenses have…

Q: Suppose the interest rate is 10%, Calculate the equivalent annual cost of the machine described in…

A: Given the interest rate = 10% Initial cost = $100000 Estimated life = 25 years

Q: If the property will be immediately

Q: B Company is contemplating whether to temporarily stop operating for the next 4 months since the…

A: Given Information Selling Price = $40Variable cost = $30Additional cost due to the shutdown =…

Q: denton productions limited utilizes statistical analysis to determine the optimal price for its…

A: Total Revenue = Price*Quantity Total Profit = Total Revenue - Total Cost

Q: The management of a manufacturing company has the following information: Revenue function: R 2700Q -…

A: Profit maximization condition is where MC= MR But revenu maximization condition where your Total…

Q: Analyse the various issues which influence industry standards used in project cost management.

A: The actions used to estimate, assign, and regulate project expenses are known as project cost…

Q: Define the problem. b. List key assumptions. c. List alternatives facing Greenfield Industries. d.…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Shawn Pen & Pencil Sets Inc. has fixed costs of $421,400. Its product currently sells for $18 per…

A: Given; Fixed cost= $421400Price=$18Variable cost=$8.20 per unitAfter new equipment was…

Q: Discuss the impact of Covid-19 on the profitability of the airline industry – general and low-cost…

A: Here we Discuss the impact of Covid-19 on the profitability of the airline industry – general and…

Q: Six years ago, an 80-kW diesel electric set cost $160,000. The cost index for this class of…

A: The current cost of the oil boiler can be calculated as follows: COld =160,000194187=165,989.304…

Q: The list price is $671 and the net price is $543. What is the trade discount rate?

A: Discount rate = (List price - Net price) / List price

Q: Michelin is considering going "lights out" in the mixing area of the business that operates 24/7.…

A: Given, Mixing Cost : $600,000 per yearIncome-tax rate : 25%MARR : 10%

Q: Which of the following statements best describes fixed operating costs? Costs that decrease directly…

A: Total costs, economically, the sum of all costs incurred by firms to produce a given level of…

Q: The input-output curve of a gas-fired generating unit is approximated by the following function:…

A: Given an input and output curve of a gas fired function.

Q: In MRP, scheduled receipts are replenishment orders that have been placed but not yet received. True…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: We find the traditional home land line telephones disappearing and being replaced by smart phones.…

A: The price-performance ratio refers to a product's ability to deliver performance, of any sort, for…

Q: A local firm sells pairs of pants at P1,514 each. The cost of manufacturing and marketing them is…

A: Given information, Selling price per unit = P1,514 Variable cost per unit = P509 Fixed costs =…

Q: The management of a manufacturing company has the following information: Revenue function: R = 2700Q…

A: TR = 2700Q -15Q2 MR = 2700-30Q Profit-maximising price = 1500 TR = P*Q P = TR /Q P = 2700-15Q ,but…

Q: Fanning Corp. incurs the following annual fixed costs: Depreciation $80,000 Officers' salaries…

A: Given information: Fanning Corp. incurs the following annual fixed costs: Depreciation = $80,000…

Q: A university is trying to determine how much it should charge for tickets to basketball games to…

A: Given:

Q: The Rocky Mountain Publishing Company isconsidering introducing a new morning newspaper inDenver.…

A: Break-even copy is denoted by X. Annual revenue (AR) can be calculated as follows: Thus, the annual…

Q: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant.…

A: When a firm shuts down in short run, it produces zero output. So TVC is zero and thus, Loss = TFC

Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…

A: Calculation of Accounting Profit of Ruth Brennan Accounting profit is a company's total earnings as…

Q: A firm has the following benfits and costs equations: B(Q) = 450Q - 26Q² and MC(Q) = 136Q

A: The net benefit is the difference between total benefits and total costs. It means a total cost…

Q: The ARA Railroad owns a piece of land along one of its right-of-ways. The land originally cost ARA…

A: Original cost of land $100,000Proposal will be rejected if:Cost>$500,000Amount offered by an…

Q: Which is an example of a cash flow from an operating activity?a. Payment of wages.b. Receipt of cash…

A: Cash flow is basically the flow of money either is real or virtual terms. It could between…

Q: X Segment has excess capacity. It produces product X at total product cost of 100 (includes 20 FC).…

A: Given information Excess capacity occurs when a firm is producing before the long-run optimum level.…

Q: During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer),…

A: Hello, thank you for the question. Since there are multiple sub-part questions asked here, only the…

Q: During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer),…

A: a. Alternatives: Work on the old machinaries, make some adjustment for producing new drill bits by…

Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

A tablet computer is being designed with the following estimated costs.What wholesale price needs to be charged if they want to make a gross profit of 40%?

Material costs $16.50
Labor costs
6.00
Overheads
15.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Calbee spent $100 to make 10 face shields. Calculate the average fixed cost of each face shield if the total variable cost incurred was $50. Question 16 options: 1) $0.5 2) $5 3) $10 4) $50
The daily cost of producing x high-performance wheels for racing bicycles is given by C(x)=0.01x2 1.5x−175+for0 x≤100≤ What production level will give the lowest cost per wheel? What is the minimum cost?
The cost of producing 5-gallon water bottles is given by C(q) = 0.005q2 + 2q + 1000. If 2000 5-gallon water bottles are produced, fint the average cost
Suppose it costs $3.50 to produce a prerecorded cassette with the overhead of $10,000,which sells for $6.00 with no middleman. How many cassettes must be sold to breakeven and interpret the result?
A New York renewable energy company pays $0.18 per kilowatthour (kWh) for the first 10,000 units of electricity each month and $0.15/kWh for all remaining units. If a firm uses 25,000 kWh/month, what is its average and marginal cost?
Suppose ADI Corporation's breakeven sales volume is $450,000 with fixedcosts of $200.000.(a) Compute the contribution margin percentage.(b) Compute the selling price if va ri a ble costs are $12 per unit.
Output from a process contains 0.02 defective unit. Defective units that go undetectedinto i nal assemblies cost $25 each to replace. An inspection process, which would detectand remove all defectives, can be established to test these units. However, the inspector,who can test 20 units per hour, is paid $8 per hour, including fringe benei ts. Should aninspection station be established to test all units?a. What is the cost to inspect each unit?b. What is the benei t (or loss) from the inspection process?
Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000 Bbls of WTI crude, the added benefit (cost) to you if you take the trade is closest to: A) ($1,400) B) $1,400 C) ($3,908) D) $3,908
This does not solve for the Present Worth of Costs
Solve by hand (no excel)
Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.
The town council of Frostbite, Ontario, is trying to decide whether to build an outdoor skating rink which would cost $1.2 million and last for only one season. Operating costs would be zero. Yearly passes would be sold to anyone who wanted to use the rink. If p is the price of the pass in dollars, the number demanded would be q = 1600 - 0.8p. The council has asked you to advise them on building the rink. You should tell them that Group of answer choices revenues won’t cover construction costs at any ticket price. There is no way to increase total consumer surplus by building the rink. if the rink is built and price is set to maximize profits, the town makes a profit and consumers will be better off. if the rink is built and price is set to maximize profits, the town makes a profit but consumers are worse off than without a rink. there is no price at which ticket revenues cover costs but the total consumer surplus from the rink exceeds costs. None of the above. The function is…