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Remaining Time: 13 minutes, 46 seconds. Question Completion Status: QUESTION 4 15 po A plant produces 15,000 units/month. Find breakeven level if FC - $75,000 /month, revenue is $8/unit and variable cost is $2.50/unit, ddetermine the expected monthly profit or loss. 7500 QUESTION 5 15 points Handheld fiber optic meters are useful for measuring temperature, pressure, and strain. The fixed costs associated with manufacturing are 5800.000 per year. If a base unit sells for $2950 and its variable cost is $2075, how many units must be sold each year for breakeven? 914 QUESTION 6 15 points Handheld fiber optic meters are useful for measuring temperature, pressure, and strain The Foxed costs associated with manufacturing are $800,000 per year. If a base unit seils for $2950 and its variable cost is $20 sales of 3000 units per year? 1825000 Click Save and Submit to save and submit. Click Save All Answers to save all answers Save All Answers Close Window Save and Sub

Answer 1

Question 4 – A plant produces 15,000 units/month.

Fixed cost = $75,000/month.

Revenue = $8/unit and variable cost = $2.50/units.

The total cost (TC) = Fixed cost + Variable cost = $75,000 + $2.50 * 15,000 = 112,500.

Total Revenue (TR) = Revenue per unit * Quantity = $8 * 15,000 = 120,000.

The expected monthly profit = $120,000 - $112,500 = $7,500.

Question 5 – Let the breakeven quantity to be produced each year be q.

The fixed cost (FC) associated with manufacturing are $800,000 per year.

Its variable cost (VC) is $2075.

Therefore, TC = FC + VC = $800,000 + $2,075*q = $800,000 + $2,075q.

A base unit sells for $2950.

Therefore, TR = P X q = $2950q.

In order to breakeven, TR – TC = 0.

Or, 2950q = 800000 + 2075q;

Or 875q = 800000;

Or, q* = 914.28 ~ 914 units.

Question 6 – 3000 units are produced per year.

The fixed cost (FC) associated with manufacturing are $800,000 per year.

Its variable cost (VC) is $2075.

Therefore, TC = FC + VC = $800,000 + $2,075*3000 = $7,025,000.

A base unit sells for $2950.

Therefore, TR = P X q = $2950 * 3000 = $8,850,000.

The yearly profit = TR – TC = $8,850,000 - $7,025,000 = $1,825,000