6. Alex Miller, Inc., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000.Required: a. What is the breakeven point in batteries?b. What is the margin of safety, assuming sales total $60,000?c. What is the breakeven level in batteries, assuming variable costs increase by 20%?d. What is

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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6. Alex Miller, Ic., sells car
batteries to service stations for
an average of $30 each. The
variable cost of each battery is
$20 and monthly fixed
manufacturing costs total
$10,000. Other monthly fixed
costs of the company total
$8,000.Required: a. What is the
breakeven point in batteries?b.
What is the margin of safety,
assuming sales total $60,000?c.
What is the breakeven level in
batteries, assuming variable
costs increase by 20%?d. What is
the breakeven level in batteries,
assuming the selling price goes
up by 10%, fixed manufacturing
costs decline by 10%, and other
fixed costs decline by $100? *
Transcribed Image Text:6. Alex Miller, Ic., sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000.Required: a. What is the breakeven point in batteries?b. What is the margin of safety, assuming sales total $60,000?c. What is the breakeven level in batteries, assuming variable costs increase by 20%?d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed manufacturing costs decline by 10%, and other fixed costs decline by $100? *
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