The following estimates have been prepared for a project: Fixed costs: $5,400 Depreciation: $3,600 Sales price per unit: $3 Accounting break-even: 50,000 units What must be the variable costper unit?
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The following estimates have been prepared for a project:
Fixed costs: $5,400
Sales price per unit: $3
Accounting break-even: 50,000 units
What must be the variable costper unit?
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- Describe the cost formula for a strictly fixed cost such as depreciation of 15,000 per year.The following estimates have been prepared for a project: Fixed costs: $36,000Depreciation: $24,000Sales price per unit: $4Accounting break-even: 40,000 units What must be the variable cost per unit? (Round your answer to 2 decimal places.)Appalachian Crafts is analyzing a project with expected sales of 18,900 units, ±2 percent. The expected variable cost per unit is $23 and the expected fixed costs are $52,000. Cost estimates are considered accurate within a range of ±1 percent. The depreciation expense is $18,400. The sale price is estimated at $54 a unit, ±2 percent. What is the total dollar difference between the revenue using the optimistic sale price versus the expected sale price?
- When studying a project, the following variable costs were estimated for a normal production capacityof 140,000 units, with a maximum capacity of 200,000 units: Materials $120,000Labor $300,000Other $80,000Fixed costs are estimated, according to the level of production, in: Production Fixed Cost 0 – 40,000 $320,000 40,001 – 130,000 $380,000 130,001 – 180,000 $420,000 180,001 – 200,000 $500,000 If the selling price of each unit is $15 and the expected production is 100,000 units per year, what isthe minimum number of additional units that need to be sold at the price of $11 per unit to show aprofit of $762,000 per year? To raise sales to 120,000 units per year, how much could be spentadditionally in advertising (fixed cost) so that by maintaining a price of $15, a profit of20% on sales?At a production level of 6,500 units, a project has total costs of $95,000. The variable cost per unit is $10.80. a) What is the amount of the total fixed costs? b) If the production level is increased to 7,000 units, without any change in the total fixed assets, what is the Total Costs?Chadron Motors is reviewing a project with sales of 6,200 units, ±2 percent, at a sales price of $29, ±1 percent, per unit. The expected variable cost per unit is $11, ±3 percent, and the expected fixed costs are $85,578, ±1 percent. The depreciation expense is $68,000 and the tax rate is 21 percent. What is the net income under the worst-case scenario? A. $4,696 B. –$28,704 C. $15,846 D. −$39,713 E. −$38,578
- Can you kindly help show the steps for calculating the Working Capital for a product line capable of producing 1.25 Million units per year, total estimated investment cost for the new line is $25 Million, selling price is fixed for the project life at $125 per unit. Working capital based on a 2.5-month supply of raw materials and 1.5 months of combined inventory (WIP and finished goods)? Variable costs per unit include $35 for materials, $20 for manufacturing, and $18 for labor. There are additional fixed operating and maintenance costs totaling $14.25 Million per year. Salvage value equal to 20% of the purchase price at the end of the 6-year project life. The Federal tax rate is 23% and State tax rate is 8.75%. MARR of 18%. Inflation is expected to increase the variable and fixed costs by 6.4% after the first year. In years 3- 6, inflation is expected to decline by 1.2% each year (year 2 inflation is 6.4%, year 3 is 5.2%, etc.) The project falls under a 7-year MACRS class life. The…Wexford Industrial Supply is considering a new project with estimated depreciation of $38,200, fixed costs of $84,600, and total sales of $211,000 at the accounting break-even level. The variable costs per unit are estimated at $9.64. What is the accounting break-even level of production?Analysis of a project: In determining the annual profit of a project the following information is used: Variable costs are S /. 10 per unit, fixed costs vary according to the level of production in the following image: If the sale price is S /. 24 and sales of 15,000 units are expected, in addition, an annual profit of S /. 140,000. How many additional units must be sold at a price of S /. 20?
- A proposed project has fixed costs of $7,400, depreciation expense of $1,320, and a sales quantity of 1,600 units. The total variable costs are $5,607. What is the contribution margin per unit if the projected level of sales is the accounting break-even point? Question 10 options: $6.28 $4.63 $5.45 $5.16 $8.13Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the total fixed costs are $2,550,000. A proposal is being evaluated to increase the unit selling price to $800. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $800, and all costs remain constant. unitsJeweled Outlook is analyzing a proposed project with expected sales of 9,200 units, ±4 percent. The expected variable cost per unit is $26 and the expected fixed costs are $49,000. Cost estimates are considered accurate within a range of ±5 percent. The depreciation expense is $18,300. The sale price is estimated at $52 a unit, ±3 percent. If the company conducts a sensitivity analysis using a variable cost of $27, what will be the total variable cost estimate?
