Semiautomatic process has a fixed cost of $40,000 per year and variable cost of $30 per...
Semiautomatic process has a fixed cost of $40,000 per year and variable cost of $30 per unit. An automatic process has fixed cost of $88,000 per year and a variable cost of $22 per unit. At what production level per year will the two alternatives break even?
Homework Answers
Answer
The breakeven quantity is at TC of one is equal to other
TC=FC+VC
For Semiautomatic Process
FC=40000
VC=30 per unit
TC=40000+30Q
For Automatic process
FC=88000
VC=22 per unit
TC=88000+22Q
TC(semiautomatic)=TC(automatic)
40000+30Q=88000+22Q
8Q=48000
Q=6000
The two alternatives will break even at a production level of 6000 per year.
Add Answer to:
Semiautomatic process has a fixed cost of $40,000 per year and
variable cost of $30 per...
Process A has a fi xed cost of $12,000 per year and a variable cost of...
Process A has a fi xed cost of $12,000 per year and a variable cost of $30 per unit. For process B, 5 units can be produced in 1 day at a cost of $125. If the company’s MARR is 10% per year, the fi xed cost of process B that will make the two alterna- tives have the same annual cost at a production rate of 1000 units per year is closest to: (a) Less than $10,000 (b) $18,000...
A manufacturer has fixed costs of $10000, a variable cost of $10 per unit of output,...
A manufacturer has fixed costs of $10000, a variable cost of $10 per unit of output, and break even volume of 50000 units what should the manufacturers unit cost be in order to break even?
Answer both questions Problem 13.018: Calculate fixed cost for one alternative in order to maintain a...
Answer both questions
Problem 13.018: Calculate fixed cost for one alternative in order to maintain a breakeven in total costs of two alternatives Process A has a fixed cost of $175,000 per year and a variable cost of $51 per unit. For Process B, 10 units can be produced in 1 day at a cost of $280. If the company's MARR is 10% per year, what will the annual fixed cost have to be for Process B in order for...
A plant operation has fixed costs of $2,000,000 per year
A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $90 per unit. a. What is the break-even point in terms of units? b. What is the break-even point in terms of dollars? c. How much capacity has been used? d. If the variable cost is increased to $55, what is the percent reduction (or increase) to the profit? What is the...
Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and...
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has foed cost of $350,600. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $115 and has fixed cost of $459,500. Next year, Sooner expects to sell...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and...
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $280 $190 $90 ZZ 170 140 30 The sales mix for Products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable labour...
ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable labour cost is $2.44 per unit. What is the variable cost per unit? ($3.87) Suppose the firm incurs fixed costs of $650,000 during a year in which total production is 320,000 units. What are the total costs for the year? ($1,888,400) If the selling price is $10 per unit, what is the cash break-even point? If depreciation is $190,000 per year, what is the accounting...
Answer both questions
Problem 13.018: Calculate fixed cost for one alternative in order to maintain a breakeven in total costs of two alternatives Process A has a fixed cost of $175,000 per year and a variable cost of $51 per unit. For Process B, 10 units can be produced in 1 day at a cost of $280. If the company's MARR is 10% per year, what will the annual fixed cost have to be for Process B in order for...
Megan Company has fixed costs of $1,675,000. The unit selling
price, variable cost per unit, and contribution margin per unit for
the two company's follow:
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,675,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $880 $440 $440 Zoro 620 480 The sales mix for products...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has foed cost of $350,600. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $115 and has fixed cost of $459,500. Next year, Sooner expects to sell...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago