plant operation has fixed costs of $3,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for 00 per unit Construct the economic breakeven chart Compare annual profit when the plant is operating at 70% of capacity with the plant operation at 100% capacity. Assume that the first 70% of capacity output is sold at $100 por it and that the remaining 30% of production is sold at $80 per unit . Use the line drawing tool to plot the lines that represent the Fixed Cost. Total Revenue, and Total Costs. Be sure to properly label your lines Use the point drawing tool to plot the Breakeven point Be sure to properly label the point an 18.000.000 9.000.000 4000,000 7.000.000 &000000 5 000 000 stand 4 000 000 JSE

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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A plant operation has fixed costs of $3,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for
$100 per unit
a. Construct the economic breakeven chart
b. Compare annual profit when the plant is operating at 70% of capacity with the plant operation at 100% capacity. Assume that the first 70% of capacity output is sold at $100 per
unit and that the remaining 30% of production is sold at 580 per unit
a. Use the line drawing tool to plot the lines that represent the Fixed Cost. Total Revenue, and Total Costs. Be sure to properly label your lines
Use the point drawing tool to plot the Breakeven point. Be sure to properly label the point
ut and Rave
10.000.000
9.000.000
4000,000
1.000.000
000 000
1.000 000
4000000-
odu
Transcribed Image Text:A plant operation has fixed costs of $3,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $100 per unit a. Construct the economic breakeven chart b. Compare annual profit when the plant is operating at 70% of capacity with the plant operation at 100% capacity. Assume that the first 70% of capacity output is sold at $100 per unit and that the remaining 30% of production is sold at 580 per unit a. Use the line drawing tool to plot the lines that represent the Fixed Cost. Total Revenue, and Total Costs. Be sure to properly label your lines Use the point drawing tool to plot the Breakeven point. Be sure to properly label the point ut and Rave 10.000.000 9.000.000 4000,000 1.000.000 000 000 1.000 000 4000000- odu
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