Sapatos Inc. sells a pair of shoes at P200. They have computed fixed cost to be P15,750 with a profit of P1,500 when 150 pairs of shoes are sold. a. Find the variable cost. b. Find the break even quantity.

Sapatos Inc. sells a pair of shoes at P200. They have computed fixed cost to be P15,750 with a profit of P1,500 when 150 pairs of shoes are sold. a. Find the variable cost. b. Find the break even quantity.

Name: Sapatos Inc. sells a pair of shoes at P200. They have computed fixed c
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: Sapatos Inc. sells a pair of shoes at P200. They have computed fixed cost to be P15,750 with a profit of P1,500 when 150 pairs of shoes are sold. a. Find the variable cost.b. Find the break even quantity.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

Dominos is planning to introduce two new pizzas (Cauliflower and Calamari). Financial data related to producing these two new pizzas are summarized in the table below. a. If these two new pizzas are sold such that the ratio of Cauliflowers over Calamaris is 4:3, what is the break-even point? b. If the product mix has changed to five Cauliflowers to five Calamaris, what would happen to the break-even point? c. In order to maximize the profit, which product mix should be pushed? d. If both pizzas must go through the same oven and there are only 30,000 oven hours available per period, which product should be pushed to market? Assume that Cauliflower pizza takes 30 minutes and Calamari pizza takes 15 minutes in the oven. Cauliflower Pizza Calamari Pizza Selling Price $10 $12 Variable Costs $5 $10 Fixed Costs $2,000 $600
1. RBF, an emerging singer, is getting ready to cut his first album. The cost of recordingthe CD is Php 500,000 but copies are Php 500 apiece. If the album can be sold forPhp1,500 each, (a) how many CDs must be sold to break even? (b)What is thebreakeven point in dollars?RBF is confident that demand for his album will substantially exceed the break-evenpoint computed above. So, Mikey is contemplating having his album at a classier (andpricier) studio. The cost to record the CD would rise to Php 90,000. However, since thisnew studio works with very high volume, production costs would fall to Php 200 per CD.(c) What is the breakeven point for this new process?(d) Compare this process to the process proposed in the pre SHOW COMPLETE SOLUTION.
4 - Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixedcost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75per unit.a) What is Smithson’s break-even point in units?b) What is the break-even point in dollars?
Break-Even Analysis Jesaki Publishing is planning for a new novel, and figures fixed costs (overhead, advances, promotion, copy editing, typesetting) at $65,000, and variable costs (printing, paper, binding, shipping) at $1.60 for each book produced. The book will be sold to distributors for $12 each. Let x be the number of books produced. The cost function is C(x)=mx+b, for some values m and b, where C(x) is given in dollars. Round m and b to the nearest tenth (1 decimal place.) What is m? Round to the nearest tenth (1 decimal place). What is b? (Round to the nearest tenth (1 decimal place.) Thanks!
A. When aggregate planning seeks to influence demand and supply, both the marketing and operations functions are involved. In this case, the goal is generally to find: a. A lower total cost plan b. A higher profit plan c. A higher sales revenue plan d. A lower cost of goods manufactured plan B. In a market situation where demand is exceeding supply, which from the following list would you generally work on first? a. Distribution b. Work force level c. Promotion d. Price
Lot sizing A producer with one product faces the following forecasted demand for the next 10 weeks: week 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 Requirement 30 12 72 11 24 42 35 30 75 68 Assume furthermore that the producer faces a Set-up cost (K) equal to 132 each time production takes place and storage costs (h) of 0.6 per unit per week. a) Find the cost of the two extreme strategies Lot - for - lot (produce exactly what is needed in each period) and Produce - once (produce everything needed in the first period).
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,500 May 2,300 February 1,700 June 2,100 March 1,700 July 1,900 April 1,700 August 1,500 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement=18001800 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in…
A company wants to develop a level production plan. The beginning inventory iszero. Demand for the next four periods is given in what follows.a. What production rate per period will give a zero inventory at the end of period 4?b. When and in what quantities will backorders occur?c. What level production rate per period will avoid backorders? What will be the ending inventory in period 4?
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,100 February 1,700 June 2,100 March 1,600 July 1,700 April 1,900 August 1,500 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $60 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand.…
Using the information in Problem 13.3, develop planB. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with addi-tional units at a premium price of $75 per unit. Evaluate this plan by computing the costs for January through August.
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,200 March 1,800 July 1,800 April 1,800 August 1,400 Her operations manager is considering a new plan, which begins in January with 200units of inventory on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. Part 2 requirement= The average monthly demand (Enter your response as a whole number.)
After you present your calculations in a meeting with the VPs of Sales, Finance and Supply Chain, they agree that before a decision is made, the company should make an effort to better calculate the values of ct and h. A team is created to conduct the calculation. After a week of work, they come to you with a revised value for ct=$90. The holding charge stays the same. For the revised value of cth=600, how many replenishments should TTS do from Northeast Athletics every year? Enter your answer rounded to the nearest whole number. For example, if your answer is 12.3456, you should enter 12 in the box below. For the revised value of cth=600, how much should TTS set aside as a budget for the cycle stock for products from Northeast Athletics? Round your answer to the nearest multiple of $100