Answered: Q.(i) . Selling Price :Rs. 12 Per Unit…

Q.(i) . Selling Price :Rs. 12 Per Unit Variable Cost : 2/3 of SP Fixed Cost :Rs. 40,000 You are required to calculate: (a) Sales to earn profit of Rs. 8000. (b) Also show the BEPs in Breakeven chart.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: A manufacturer sells a product at $9.45 per unit, selling all produced. The fixed cost is $2325 and…

A: TC=TFC+TVCProfit occurs when TR>TCProfit=TR-TCTR=P×Q

Q: An engineer can do required computations in 3 hours or she can delegate the work to an engineering…

A: A CC {comparative costs} is described as the difference in the costs of manufacturing identical…

Q: The yariablecosts incured by the business in the curent period per unit of output is: (aDThe average…

A: Marginal input cost (MIC) is the cost of using an additional unit of variable input; restated, it is…

Q: An electric power distributor charges residential customers $0.10 perkilowatt-hour (kWh). The…

A: a. Monthly bill can be calculated as follows: The Annual Bill can be calculated as follows: Thus,…

Q: Coronado Industries developed the following data: Beginning work in process $1100000 inventory…

A: The data of the Coronado Industries has been given to us showing various components in it and we…

Q: The total cost of an MBF plant is 35,000 units if it produces 500 products, and a total cost of…

A: Given information When Q=500, Total cost =35000 When Q=1000, Total Cost=6000 P=100

Q: BC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total…

A: Company produces Q = 100 pendants Total fixed cost TFC = $5000 Total variable cost TVC = $15000

Q: I have a question about the following question. What is the annual breakeven production quantity…

A: Breakeven point is simply the point where the total revenue is equal to the total cost. It is…

Q: a. What is the current total annual cost (TC))K b. What is the economic order quantity (EOQ)?4 c.…

A: Economic order quantity (EOQ) is a calculation companies perform that represents their ideal order…

Q: Sales 3,000 units Sales price $70 per unit Variable cost $50 per unit Fixed cost $25,000 If the…

A: Given: If the dollar contribution margin increased by = 10% The total fixed cost is decreased by =…

Q: 8.1 The fixed costs at Harley Motors are $1M annually. The main product has revenue of $9.90 per…

A: Breakeven Quantity=Fixed Cost/(Revenue per unit-Variable cost per unit)

Q: - factory is scaling up production so they can sell 2,000 MP4 mode nbly team does only one shift a…

A: *Answer: *1 Materials, labor, and power costs are all Variable Costs since they change in…

Q: Given that fixed cost 330 and varioble cost+120: the totol varioble cost of producing 30 unts of…

A: Total cost is the sum of fixed cost and variable cost

Q: Please answer with details on how to do it. A small company manufactures a certain product.…

Q: A firm produces 5000 waterproof cellphone cases, which they sell for $30 each. They have $35,000 in…

A: Answer to the question is as follows:

Q: ng started signment you will be working with models for price, revenue, cost and profit for a small…

A: A cost function is a formula that predicts the cost that will be incurred at a certain level of…

Q: es of the AFC and AVC curves 1OTE: you do not r ariable cost information.) For quantities of 50, 100…

A: Total cost (TC) in the easiest terms is all the costs ourred in manufacturing something or engaging…

Q: There is a monthly profit objective of $17,000 for Ricky's Repair Shop. 60 percent of for by…

A: The profit margin is a proportion of an organization's benefit (deals short all costs) separated by…

Q: A vending machine: FC = $1500 per month per site, p = $0.70 per gallon, and v = $0.12 per gallon. a)…

A: Here we calculate the following terms by using the given information , so the calculation of the…

Q: A company is investigating the “make or buy” decision for a new item, with the following cost…

A: TC = TFC +T VC Where; TC = Total Cost TFC = Total Fixed Cost TVC = Total Variable Cost TC = 100,000…

Q: The National Bank of Union City currently has one outsidedrive-up teller. It takes the teller an…

A: Cost: It refers to the monetary value of goods and services that are produced by the producers and…

Q: Time Required per Student Step Description Unpack and place on belt 1.0 minute Strip off bad habits…

A: Average productivity is total productivity divided by total number of workers. Marginal productivity…

Q: 02/A manufacturing concern produces a product which is sold at a price of $10.5 per unit. The…

A: Profit is the difference between the total revenue and total cost. Whereas Total revenue is total…

Q: Given: Fixed Cost =P 14,000,000.00; Variable Cost = P 8,750.00 / Unit; Selling Price = 15,000.00/…

A: Given Fixed cost FC= P 14,000,000 Variable cost VC=P 8750 per unit Selling price P=15,000 per unit.…

Q: A company has a production capacity of 500 units per month and its fixed costs are P 250,000 a…

A: Given: Capacity per month=500 units Fixed cost per month=P 250000 Variable costs per unit=P 1150…

Q: A hollow biocks making business can produce 15,000 pieces per week. Their manager determined that in…

A: Here we calculate the profit efficiency by the following method as follow;

Q: 0. One of the products ofa company has a price of$3 per unit. Its fixed costs are $200,000 month and…

Q: Selling price per large Snowie $ 5.00 Ice per Snowie $…

A: Working Notes :- Sales Revenue = 5 * 69 * 20 = 6900 Ice Expense = 0.2 * 69 * 20 = 276 Spoon straws =…

Q: Quest io n 12 A manufacturer can sell a certain product for R80 per unit. Total cost consists of a…

A: Answer: The total cost function is given below: Cx=Fixed cost+variable cost×quantityLet the quantity…

Q: The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and…

A: The firms, and businesses operate in the motive of maximizing the level of revenue which they can…

Q: Transportation costs per ton of product vary with distance. For trucks the function is: TCt = 3 +…

A: (1)Substitute d = 1,2,...,10 in TCt,TCr,TCb to get the following table:

Q: Company sells titanium alloy fasteners for airframe applications. The fasteners sell in packets of…

A: Given, TC=3,200,000+0.002Q2P=$145Q=50,000 packets

Q: 1.Following is a summary of basic cost and revenue data for an Engineering Consultation Office.…

Q: Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No…

A: total cost is the total cost which is incurred by producer in producing goods and services , it…

Q: scuss the optimal method for procuring inputs thát have well-defined and measurable quality…

A: There are different strategies for obtaining data sources like Spot Exchange, Contracts and Vertical…

Q: Q1) One of the industrial investors needed an analysis that would lead him to a break-even level…

Q: BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly…

A: The breakeven point is a situation where the firm covers its production costs entirely. At this…

Q: The owner shop is contemlating adding anew product which will require additional mouthly payment of…

A: Fixed costs are costs that are independent of the total output that is produced by the firm.…

Q: Given that the relationship between the sales price for one of a company's products and the quantity…

A: Total revenue is the amount earned in monetary terms after the sales of all the quantities at the…

Q: 5. A plastic company operates 300 days a year. It produces and supplies 300,000 plastic caps for…

A: Operates = 300 days Supplies = 300,000 plastic cups Production = 12000pcs Annual Carrying Cost =…

Q: The owner shop is contemlating adding anew product which will require additional mouthly payment of…

Q: At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per…

A: Variable cost per unit is denoted by the AVC curve and it is at minimum when AVC=MCwhere9000 units…

Q: COST OF PERFORMING THE TASK: SECRETARY WORKING WITH EXECUTIVE

Q: n the design of a jet engine part, the designer has a choice of specifying either an aluminium alloy…

A: Given information: Weight of aluminium casting/unit = 1.2 kg Cost of making aluminium casting = $.…

Q: If engineering change order is the activity for an application of the ABC method of overhead…

A: The businesses have certain requirements of the costs and the benefits that are likely to take place…

Question

Q.(i) . Selling Price :Rs. 12 Per Unit
Variable Cost : 2/3 of SP
Fixed Cost :Rs. 40,000
You 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 price
would affect the MOS?
Particulars Rs.
Selling price per unit 40
Material per unit 12
Labour per unit. 8
Variable Overheads per unit 4
Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.
Reduced selling price is Rs. 32 per unit.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 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

Using the Profit data create a two-way Data Table that calculates the profit using labor cost per item ranging from $5 to $7 with $0.2 increments and quantity from 1500 to 2500 units with 100-unit increments. Assumptions: Fixed cost: $ 5,000.00 Material costs per item: $ 2.25 Labor costs per item: $ 6.50 Shipping costs per 100 items: $ 200.00 Price per item: $ 12.99
The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each, what is the break-even quality per month? (Hint: for Break-even quality, COST = REVENUE)
The costs of producing a commodity consist of ₱102.00 per unit for labor and material cost and ₱54.00 per unit for other variable cost. The fixed cost per month amounts to ₱850,000. The commodity is sold at ₱740.00 each,a. what is the break-even quantity per month?(Hint: for Break-even quantity, COST = REVENUE)b. how many units must be produced each month in order that the net profit equalsthe cost?c. what is the net profit if for a production of 4000 units per month, in pesos?(HInt: PROFIT = REVENUE - COST)
BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.
A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price demand relationship for this product is P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand. Total cost = fixed cost + Variable cost, TC = CF + CV Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC a) Develop the equations for the total cost and total revenue. b) Find the breakeven quantity c) How many units must be sold to maximize profit? d) What is the company’s maximum profit?
Selling price per large Snowie $ 5.00 Ice per Snowie $ 0.20 Spoon straw (need one per Snowie) $ 0.02 Styrofoam cup (need one per Snowie) $ 0.08 Napkin (need two per Snowie) $ 0.02 Servings per gallon of syrup 28 Cost per gallon of syrup (includes concentrate, preservative, and sugar) $ 8.00 Hourly rate for workers $ 10.00 Event registration fee per day $ 25.00 Electricity, insurance, maintenance, and permit costs per month $ 250.00 Kiosk rental cost per month $ 650.00 Purchase cost of two ice shavers (5-year life) $ 3,180.00 Purchase cost of a flavor station (5-year life) $ 1,080.00 a. Number of days you anticipate opening the kiosk per month 20 b. Number of hours you will work (no wages required) per day 6…
Given that the relationship between the sales price for one of a company’s products and the quantity sold per month is D = 500 – 5p units where D is the demand or quantity sold per month and p is the unit price in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit produced. (a) Determine the optimal number of units that should be produced and sold per month. (b) What is the maximum profit per month related to the product? (c) What is the company’s range of profitable demand? Support your answers graphically.
based on the information in the table what is marla's profit margin? total revenue-$1,400total cost- $900average cost- $7fixed cost-$700quantity-200
Method of full coating is taking into account a. Only direct costs and respective contribution margin b. All costs including fixed and variable costs c. Only direct costs and respective gross margin d. Total sum of fixed costs,but only a paid amount of variable cos
Martinez Company's relevant range of production is 7,500 units to 12,500 units. The unit costs when it produces and sells 10,000 units are provided in the table. If 12,500 units are sold, what is the variable cost per unit sold? Amount per unit ($) Direct materials 6.00 Direct Labor 3.50 Variable manufacturing overhead 1.50 Fixed manufacturing overhead 4.00 Fixed selling expense 3.00 Fixed administrative expense 2.00 Sales commissions 1.00 Variable adminsitrative expense 0.50
A certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…