Pearson eText for Engineering Economy -- Instant Access (Pearson+)
Pearson eText for Engineering Economy -- Instant Access (Pearson+)
17th Edition
ISBN: 9780137533138
Author: William Sullivan, Elin Wicks
Publisher: PEARSON+
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Chapter 11, Problem 37FE
To determine

Profitability of the project.

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CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: 1. Find the break-even point in units. 2. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.) 3. Find the break-even point in sales dollars. 4. What amount of sales dollars is required to earn an annual profit of $140,000?
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There have been several variances in the cost and schedule estimates on your project, and the original estimating assumptions are no longer valid. The variances will likely continue until the end of the project. Calculate the SPI. BAC = $1,000,000 EV = $200,000 PV = $4000,000 AV = $150,000 a. 0.2 b. 0.5 c. 1.333 d. 1
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