Q1 = (4310/22) - (P1/22) %3D Q2 = (5021/17) - (P2/17) TC = 760 + 14Q1 + 32Q2 %3D Form the profit equation, TI and solve for the critical values. (a) What is the critical value of Q1?
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- Hw.146. Please set up an Excel spreadsheet, and show your work within the spreadsheet to complete the solution. 1. The demand for LED 60 Watt light bulbs sold at Home Depot can be shown by D(p) = -9p+750 where (p) is the quantity sold in hundreds and p is the price per bulb in dollars A. State the Revenue function for the LED bulbs. (Insert a text box in your spreadsheet.) B. Home Depot incurs fixed cost of $4000 and variable costs of .03 per bulb. Home Depot knows that to be competitive the bulbs must not exceed a price of $9.00 each. How much should the bulbs be sold so that Home Depot breaks even? C. What is Home Depots profit if it sells the bulbs for $7.50 eachThe Asian Transmission Co. makes and sell automotive parts. Present sales volume is 50,000 units a year and selling price is P50.00 per unit. Fixed expenses is P180,000.00 per year and variable cost per unit is P35.00. What is the total profit / loss for the year if only 10,000 are sold? a. P30k b. P30k c. P70k d. P570kThe management believes that every 9% increase in the selling price of one of the company's products results in a 10% decrease in the product's total unit sales. The variable production cost of this product is ₱12.60 per unit and the variable selling and administrative cost is ₱4.90 per unit. The product's profit-maximizing price is closest to: a. ₱104.20 b. ₱19.11 c. ₱20.83 d. ₱96.12
- Which of the following power plants is better investment, assuming 8% interest on the sinking fund and no salvage value in either case, taxes/insurance at 10% and interest on capital at 12%. Use ROR and Present Worth Method. - Coal plant which costs P1M, last 10 years and cost annually P100k to operate. - Fuel-oil plant which costs P800k will last 7 years and cost annually P70k to operate.A contractor has an excavator requiring repairs within her fleet of cquipment for executing projects. She is offered $6,000 for the equipment by another contractor but refuses to sell. Other financial details of the excavator are as follows: Repair cost of $4,000 Useful life of 5 years At the end of year 1, the operation and maintenance cost is pegged at $2.000. This value increases by $1,000, S1,200, S1,400, and $1,600 for the following years. At the end of year 1, the salvage value is pegged at $6,000. This value decreases by 25% for the following years. The minimum acceptable rate of return (MARR) is 12%. Due to the constant use and operation and maintenance required, determine how long this equipment should be kept by the contractor. N.B. SHOW THE DETAILED WORKINGS FOR EACH YEAR. DO NOT STOP AT YEAR AFTER THE ECONOMIC LIFE.A fabrication company engaged in production of a motor part has a production capacity of 700, 000 pieces per year. But, it is just operating at 62% of its full capacity due to unavailability to finance the importation of their materials. The company has an annual income of P 430, 000.00, annual fixed cost are P 190, 000.00 and variable costs are P 0.348 per unit. How many productions of parts must be produced for break-even point? Given:Required:Solution:
- One company announced profits of 175000€ for year 1, 180,000€ for year 2, 190,000€ for year 3. The percentage change in net earnings from year 1 to year 3 is calculated as: a. 15000/175000 b. 25,000/175,000 c. 10,000/190,000 d. 25,000/190,000 e. None of the aboveA manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. what are the following 1. How many units per year must be sold for the company to breakeven? 2. If 10,000 units per year are sold, what is the annual profit? 3. If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year? 4. If the labor cost is increased by 10% and materials cost is increased by 5%, the number of units to break even is closest to:ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000.1. What is the break – even sales volume of the product per year?2. What is the profit per year based on the present production – sales status?3. What is the loss if only 150 units were produced and sold in a year?
- Jumbo Company uses 1,100 units of an particular item each year. Carrying the item in inventory costs $200 per unit per year. It costs $150 for each order of the chemical. The firm uses the item at a constant rate each year. Calculate the Economic Order Quantity AND Use the data from problem above and assume that Jumbo Company operates 250 days per year. Also assume that its total usage is 1,100 units per year. There is a lead time of 2 days and Jumbo desires to keep a safety stock of 4 units. Calculate the reorder pointWhat are the breakeven points and the range of profitability for below given Total profit general equation of a product is TP = - 0.00102 + 80D - 100?A firm hasi nitial value V and has an investment opportunity costing 400 that will yield it an endpoint value of V +500 but it has to issue new shares to raise the required 400. Initially its owners own 10 shares that are currently selling at a market price of 80 per share. Note that this price may not necessarily reflect the true value per share– only the firm itself knows this. If it is indifferent between issuing and not issuing at the market price of 80, what is the initial true value of the firm V?