onsider a manufacturing setting with three cost and price factors: Total Fixed cost: 60,000.00 Php Variable cost per unit: 750.00 Php Selling price per unit: 2,000.00 Php When production volume is 0-30 units, an additional 5,000.00 Php is required for labor; for volumes in the range of 31-60 units, an additional 10,000.00 Php: and in the range of 61-90 units, ddition l15.00.00 PL
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- Company A has fixed expenses of Php 15,000 per year and each unit of product has a Php 0.002 variable cost. Company B has fixed expenses of php 5000 per year and can produce the same product at a php 0.05 variable cost. At what number of units of annual production will Company A have the same overall cost as Company B?A plant has sufficient capacity to manufacture any combination of four different products (A, B, C, D). For each product, time is required to be invested in four different machines, which is expressed in hours per kilogram of product, as shown in the following table as shown in the following table: (attached image) Each machine has an availability of 60 hours per week. Products A, B, C and D can be sold at $9, $7, $6 and $5per kilo, respectively. Variable labor costs are $2 per hour for machines 1 and 2, and $3 per hour for machines 3 and 4. The material costs for each kilogram of product A are $4. The material costs for each kilogram of products B, C, D and D are $4 each kilogram of products B, C and D are $1. What needs to be done:Formulate a profit-maximizing PL model given the maximum demand per product shown in the table (there are 16 variables). Note: Do it by hand, no computerThe publishing company is publishing a book for business economics for which it has estimated the following total fixed and average variable cost: Total fixed cost $ 100,000 Average Variable Cost $ 20 Selling Price $ 30 Determine the breakeven output and total sales revenues. Determine the output that would generate a total profit of $ 60000 and total sales revenue at that output level. If total fixed cost reduced to $ 40,000 then what is the breakeven point. How much units they have to sale if they require to have a profit of $ 60,000. Find out the publisher breakeven point if fixed cost remain same at $ 100,000 but the variable cost reduced to $10. Also find out the breakeven point if profit of $60,000 has to be earned. Find out the breakeven and sales at required profit of $60,000 if all cost remain same but the price per unit increased to $40.
- A company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data: Option A: Purchase 10,000 items per year at a fixed price of Php 425 per item. The cost of placing the order is negligible according to the present cost accounting procedure. Option B: Manufacture 10,000 items per year, using available capacity in the factory. Cost estimates are direct materials = Php 250 per item and direct labor = Php 75 per item. Manufacturing overhead is allocated at 200% of direct labor (= Php 150 per item). Based on these data, should the item be purchased or manufactured?If you know that with 10 units of output, average fixed cost is OMR 22.50 per unit and average variable cost is OMR 51.25 per unit, then average cost of each unit is: a. OMR 73.75. b. OMR 225. c. OMR 512. d. OMR 28.75.A factory manager is planning for the manufacture of plywood to be sold overseas. The fixed cost of operation is estimated at $800,000 per month while the variable cost is $155 per thousand board feet of plywood. The selling price will depend on how much will be produced and sold and is determined by the relationship, price per thousand board feet, p = $600 – 0.05D, where D is the amount produced and sold in thousands of board feet. Determine the monthly production that will maximize the total profit and corresponsding price. Dettermine also the corresponding maximum profit per month. A) For maximum profit, (to the nearest unit) thousands of board feet per month must be produced and sold at per thousand board feet of plywood.(Round to the nearest cent.) B) The maximum profit per month is equal to $
- Product X is sold for $500 per unit. The total cost of production per year, including capital recovery and a return, is given by the expression TC = 0.04n3 − 700n + 50, 000 where n is the number of units sold. If TC represents the total of all fixed and variable costs, determine the following: a. The value of n that maximizes profit. b. The maximum profit for a year. c. The fixed cost per year.1. Compute the contribution margin per unit if the total fixed cost is P400, 000 and breakeven point is 4,000 units. a. P25 b. P100 c. P2, 500 d. P1, 000 2. What is the contribution margin ratio when the fixed costs are P13, 000, 000, the sales are P25, 000, 000, and the variable costs are P10, 000, 0000? a. 40% b. 48% c. 60% d. 52% 3. Which of the following is the value that we need to consider that will contribute towards covering fixed cost and providing for profit?* a. contribution margin b. net margin c. gross profit d. gross marginIsrael's "Iron Dome" Works! Israel’s Iron Dome is an air defense system designed to intercept and destroy incoming missiles and mortars fired across the border by Hamas and other Palestinian factions. It works. Israel’s Defense Minister claims the Iron Dome has been 90 percent effective in shielding population centers. From 2014 until 2021, more than 2,400 projectiles were intercepted, most of them launched from the Gaza Strip by militants. In 2021 Israel upgraded the system to work on ships as well as land. Suppose the annual cost of the Iron Dome is $500 million. What is the opportunity cost of this defense spending in terms of private housing assuming a new home can be constructed for $100,000?
- Company A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost. Company B has fixed expenses of $6,000 per year and can produce the same product at a $0.60 variable cost per unit. At what number of units of annual production will Company A have the same overall cost as Company B? (i.e., find the breakeven point)Henleigh Hill, CFO of HH Corp., uses a decentralized company processing center for check collection. She estimates that the total annual cost of collections is currently $300,000. Henleigh is considering switching to a centralized company processing center, but she is worried about the required increase in fixed costs. Use the following assumptions to determine the maximum fixed cost of the centralized company processing center that would make Henleigh indifferent between a decentralized or centralized company processing center. Number of checks processed per year = 450,000 Average face value of checks = $1,000 Collection float for centralized processing = five days Variable processing cost per check for centralized processing = $0.25 Opportunity cost rate = 5 percentThe average labor cost per unit for the first batch produced by a new process is P120. The cumulative average labor cost after the second batch is P72 per product. Using a batch size of 100 and assuming the learning curve continues, the total labor cost of four batches will be: P4,320 P2,592 P17,280 P10,368