Question

I need help with these questions my dawh

1) (10 points) EmKay Industries operates a factory that has fixed costs of $250,000 per month. The variable cost of the product is $75 per unit and the product sells for $125 per unit. (Ignore the time value of money in your calculations). a) (4 points) Determine the number of units the factory must produce and sell per month in order to breakeven. b) (6 points) If the factory produced and sold 75,000 units last year, determine the following. (i) Net profit or loss for the year, (ii) average cost per unit produced, and (iii) marginal cost per unit. 2) (10 points) A small business needs a printer and has narrowed its choices to a laser printer and a high-end ink-jet printer. The purchase price and printing cost (cartridge and paper) data provided by the respective manufacturers is as shown below. Assume that either printer has a useful life of 2 years and zero resale value. (Ignore the time value of money in your calculations.) Printer Purchase Price Printing cost per page Laser $400 $0.03 Ink-jet $250 $0.05 a) (5 points) How many pages must the business print each year for the total cost of purchasing and operating the two printers to be the same? b) (5 points) If the business expects to print 8,000 pages per year, which printer should be purchased and what is the average cost per page for this printer? 3) (10 points) Your friend invests $50,000 today to pay for his business expansion over the next few years. He expects to withdraw $25,000 two years from now and the remaining amount four years from now. What is the amount of his second withdrawal if the fund is depleted after the second withdrawal? Use an annual interest rate of 10% compounded annually. 4) (7 points) Jane wants to invest some money today to accumulate $100,000 at the end of 6 years to pay for her child's education. How much should she invest if the investment earns a) (3 points) 8% simple interest per year? b) (4 points) 8% per year compounded annually? 5) (7 points) How long would it take for an investment to triple its initial value at a) (3 points) 8% simple interest per year? b) (4 points) 8% per year compounded annually?

Answer 1

As per Cheggs policy 1st question is solved.

Particulars		Amount	Remarks
Selling Price	A	125
Variable Cost	B	75
Contribution	C=A-B	50
Fixed Cost	D	2,50,000
Breakeven Units	E=D/C	5,000	Break even Units = Fixed Cost/ Contribution per unit
If Sales are made at 75000 units	Remarks
Particulars		Amount
Sales	F	75,000
Revenue	G=F*A	93,75,000
Variable Cost	H=F*B	56,25,000
Fixed Cost	D	2,50,000
Total Cost	I=D+H	58,75,000
Net Profit	K=G-I	35,00,000
Average Cost Per Unit	J=I/F	78.33	Average cost per unit = Total cost/ number of units
Marginal Cost P.U		75	Equals to Variable cost per unit

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