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Cebu Tire and Rubber Company has a capacity to produce 650,000 tires of variable sizes per year. At present, it is operating at 62% capacity. The firm’s annual income is P 416,000. Annual fixed costs are P 192,000 and the variable costs are equal to P 0.356 per unit of product. (a) What is the firm annual profit or loss? (b) At what volume of sales does the firm break-even?
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- A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.A company has annual fixed costs of $2,500,000 and variable costs of 0.15¢ per unit produced. For the firm to break even if they charge $1.85 for their product, the level of annual production is nearest to what value? (a) 375,000 units (b) 1,315,789 units (c) 1,351,351 units (d) 1,562,500 unitsA certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 70% capacity. The firm's annual income is P7,860,000.00. Annual fixed cost is P3,820,000 and the variable costs are equal to P5.56 per unit of product. What is the firm's annual profit or loss and what volume of sales does the firm break even?
- ______6 Mauro Products distributes a single product, a woven basket whose selling price is $17 and whose variable expense is $14.96 per unit. The company's monthly fixed expense is $3,672. a. Solve for the company's break-even point in unit sales using the equation method. b. Solve for the company's break-even point in dollar sales using the equation method and the CM ratio.A plant operation has fixed cost of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $70 per unit, and the product sells for $120 per unit. a) What is the annual break even volume of this product? b) Compare annual profit when the plant is operating at 90% capacity with the plant operation at 100% capacity. Assume that the first 90% of capacity output is sold at $120 per unit and that the remaining 10% of production is sold at $100 per unit.A certain firm has a capacity to produce 650,000 units of a certain product per year. At present, it is operation at 62% capacity. The firm's annual income is ₱4,160,000. Annual fixed cost is ₱1,920,000 and the variable cost are equal to ₱3.56 per unit. What is the annual profit or loss?
- 5. A company has a production capacity of 500 units per month per month and its fixed costs are P250,000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break even points. What are the old and the new profit at 100 percent capacity?A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost 25,200 31,800 38,500 46,600 52,500 Power per year 1,300 1,450 2,600 2,300 2,300 Labor per year 10,500 9,200 6,200 3,900 2,350 Maintenance per year 2,800 1,800 1,400 1,300 850 Taxes per year 3% 3% 3% 3% 3% Life, years 5 5 5 5 5 If money is worth 15% before taxes to the company, which machine should be chosen? Use Annual Cost MethodA fabrication company engaged in production with a capacity of 150, 000 pieces per year. But, it is just operating at 70% of its full capacity. The company has an annual income of P 250, 000.00, annual fixed cost are P 50, 000.00 and variable costs are P 1.00 per unit. How many productions of parts must be produced for break-even point? Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/1h4ra80IE8IRtYyja16iK6TtjCrTDi73j/view?usp=sharing
- A firm has the capacity to produce 650,000 units of product per year. At present, it is operating at 64% of capacity. The firm’s income per unit is $1.00, annual fixed costs are $192,000, and variable costs are $0.376 per unit of product. Solve, a. What is the firm’s current annual profit or loss? b. At what volume of product does the firm break even? c. What would be the profit or loss at 80% of capacity?A company in Denver started a new production line to manufacture a new part. The table below showed the costs. If the parts will be sold at the selling price = $15.00/unit, what annual production quantity need to be manufactured to make it breakeven? Material and Parts Cost $3.00/unit, Labor Costs $4.00/unit, Overhead Cost $2,500,000, Annual Production Quantity ? unitsYou need to determine whether a project is profitable or not in a long run. Based on the data given, which of theseprojects will be profitable according to engineering economy methods?a. θ = 3 yrs., Net Value: 0b. Accumulated (without interest) net values of the revenues, expenses and investments after 5 years is +300.c. Accumulated (without interest) net values of the revenues, expenses and investments after 4 years is +100.d. θ = 6 yrs., Net Value: +400