Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 2, Problem 17P
To determine
Breakeven point.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A product that has a list price by the company to be 589 while the variable cost of manufacturing is 340.
1. What is the fixed cost per year that the company can afford to breakeven with sales 9000/year?
2. If the fixed cost of the company is actually 750,000 per year, what is the profit at a sales level of 7000 units?
At the break-even point of 2000 units, variable costs are $55000, and fixed costs are $32000. How much is the selling price per unit?
$11.5
$43.5
$16
$27.5
The costs of producing a certain commodity consist of 125.00 per unit for labor and material cost and 320.00 per unit for other variable cost. The unit can be sold at 1,200.00. If the production capacity per month is 5,200 units, what maximum fixed amount can the company spend each month of breakeven?
Answer: 3,926,000.00
Explain every process.
Chapter 2 Solutions
Engineering Economy
Ch. 2 - An experimental composite engine block for an...Ch. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10P
Ch. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Prob. 14PCh. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - An automobile dealership offers to fill the four...Ch. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - A hot water leak in one of the faucets of your...Ch. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48SECh. 2 - Prob. 49SECh. 2 - Prob. 50CSCh. 2 - Prob. 51CSCh. 2 - What is the optimal number of units that should be...Ch. 2 - Prob. 53FECh. 2 - Prob. 54FECh. 2 - Prob. 55FECh. 2 - Prob. 56FECh. 2 - Prob. 57FECh. 2 - Prob. 58FE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- The ABC Manufacturing Company incurs an annual fixed cost of $100,000 to maintain its production facilities. Additionally, the variable cost per unit produced is $10. If the company produces and sells 5,000 units in a year, what is the total annual cost?arrow_forwardProduct X currently sells for $12 per unit. The variable costs is $4 per unit and 10,000 units are sold annually with a profit of $30,000 per year. A new design will increase the variable cost by 23% and fixed cost by 15% but sales will increase to 13362 units per year. At what selling price do the break even occurs for the new design?arrow_forwardCost analysis Tech engineering is making a product for overseas market. The following cost data for the product has been compiled. Item Selling price Materials and purchased parts $25/unit Direct Labor (per unit) Fixed Cost a) Calculate the breakeven volume for this product Cost $135 2 hrs at $20 per hour $1,400,000 b) What is the profit per unit if 30000 units are sold c) To reduce the breakeven volume to 15000 Units, what should be the selling pricearrow_forward
- A corn refining company produces corn gluten cattle feed at a variable cost of $83 per ton. If fixed costs are $120,000 per month and the feed sells for $134 per ton, how many tons should be sold each month to have a monthly profit of $570,000? The company must sell tons. (Round to the nearest whole number as needed.)arrow_forwardHow many books will a publisher have to sell to breakeven if fixed costs are $100,000, the selling price perbook is $60, and the variable costs per book are $40?arrow_forwardA plant operation has fixed costs of$ | 50,000 per year and variable costs of $50 per unit. When the plant produces the maximum capacity, which is 7000 unit per year, the profit equals $1,800,000. What is the breakeven point (in units) of this plant? (Assume that the unit selling price is constantarrow_forward
- The break-even sales dollar figure for an operation that sells 615 products at $15 if each item costs $5 to produce and the fixed costs for the operation are $3,700/month is $Blank 1.arrow_forwardThe cost of producing a computer diskette is as follows: Material cost is $7.00 each, labor cost is $2.00 each, and another expense is $1.50 each. If the fixed expenses are $69,000/month, how many diskettes must be produced each month for break even if each diskette is worth $250?arrow_forwardGiven data: Fixed Factory Overhead Cost = 50,000 dollars Fixed Selling Overheads Cost = 10,000 dollars Variable Manufacturing Cost per unit = 13 Variable Selling Cost per unit = 5 Selling Price per unit = 35. Compute (a) the break-even point in terms of sales value (b) number of units that must be sold to earn a profit of 80,000 dollarsarrow_forward
- A manufacturing company needs to know whether to produce components for a Bird Feeder in-house or buy the components from a fabricator. To make the components in-house, the company needs to buy an injection molding machine, which costs $9,000. The company expects to produce 10,000 units per year. The following estimates have been made: Fixed cost per year Variable cost per part Make $9,000 $6.45 Buy. $0 $7.20 a. What is the break-even point? b. If the number of units produced is 10,000, which option is cheaper: Make or Buy? Explain why. b. If the number of units produced is increased to 12,500, which option is cheaper: Make or Buy? Explain why.arrow_forwardOwen conner works part time packaging software for a local distribution company in indiana. The annual fixed cost is $15,000 for this process, direct labor is $4.00 per package, and material is $5.00 per package. The selling price will be $15.00 per package. How much revenue do we need to take in before breaking even? What is the break even point in units?arrow_forwardGarber Furniture manufactures beds selling for $529 each. Variable costs per unit are $187 for direct material, $165 for direct labor, $44 for variable production overhead, and $15 for variable selling and administrative costs. Annual fixed costs for production overhead are $200,000 and for selling and administrative costs $124,000. What is the number of units required to breakeven? 2,436 units 2,492 units 1,831 units 2,746 units 612 units Onone of the above / listedarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Break Even Analysis (BEP); Author: Tutorials Point (India) Ltd.;https://www.youtube.com/watch?v=wOEkc3O_Q_Y;License: Standard YouTube License, CC-BY
Cost Volume Profit Analysis (CVP): calculating the Break Even Point; Author: Edspira;https://www.youtube.com/watch?v=Nw2IioaF6Lc;License: Standard Youtube License