A machine manufacturer sells each machine for $6,900. The fixed costs are $287,450 per annum, variable costs are $2,050 per machine, and the production capacity is 74 machines in a year. a. What is the break-even volume? Round up to the next whole number b. What is the break-even revenue? Round to the nearest cent c. What is break-even as a percent of capacity per annum? % Round to two decimal places d. What is the profit or loss made if 68 machines are sold in a year?
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- A machine manufacturer sells each machine for $7,300. The fixed costs are $279,550 per annum, variable costs are $1,500 per machine, and the production capacity is 58 machines in a year. What is break-even as a percent of capacity per annum?The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit.Consider each case separately:Required:1. a. What is the current annual operating income?b. What is the current breakeven point in revenues?Compute the new operating income for each of the following changes:2. A $0.03 per unit increase in variable costs3. A 12% increase in fixed costs and a 10% increase in units sold4. A 18% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variablecost per unit, and a 40% increase in units soldCompute the new breakeven point in units for each of the following changes:4. A 10% increase in fixed costs5. A 10% increase in selling price and a $20,000 increase in fixed costsThe Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit.Consider each case separately:Required:1. a. What is the current annual operating income?b. What is the current breakeven point in revenues?Compute the new operating income for each of the following changes:2. A $0.03 per unit increase in variable costs3. A 12% increase in fixed costs and a 10% increase in units sold4. A 18% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variablecost per unit, and a 40% increase in units soldCompute the new breakeven point in units for each of the following changes:4. A 10% increase in fixed costs5. A 10% increase in selling price and a $20,000 increase in fixed costs(please give the solution of part 4,4,5 of this question, previous are already solved by you
- The Doral Company manufactures and sells pens. Currently, 5,000,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit. Consider each case separately: Q1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: Q2. A $0.04 per unit increase in variable costs Q3. A 10% increase in fixed costs and a 10% increase in units sold Q4. A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Compute the new breakeven point in units for each of the following changes: Q5. A 10% increase in fixed costs Q6. A 10% increase in selling price and a $20,000 increase in fixed costssolve i, ii and iii please. Suppose the demand of a product produced by a production firm is 8000 per year (1 year = 312 days) and it occurs at a constant rate. The production rate of the product per year is 10000. The set up cost of setting a machine for the production of the product is 600 Taka. The selling price per unit of the product is 1000 Taka. The inventory holding cost per unit per year is calculated as 5% of the selling price per unit. Assuming selling of the product starts from the outset of production and there is no occurrence of shortages of the product, b) Let the cost of inspection is given by 30Q, where $30 is the cost per unit of inspection and the cost of passing defectives is estimated as 12000/Q. i. Find the optimal amount of inspection that minimizes the associated total cost. ii. Find the associated minimal total cost. iii.Find the total costs at Q = 16 and Q = 24 and highlight their relationship with the cost of optimal quantity of inspection.A company sells its product at P18 per unit. Variable costs are P12 per unit and fixed costs are 150,000 per annum. The company wants to realize a profit of P60,000 during the year. What should be the sales revenue?
- A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price? Round to two decimal places.2. A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to produce and sell 600,000 units yearly at a total income of P720,000.00. Annual fixed costs are P250,000 and the variable costs per unit is P0.70. a. Give the firm's annual profit or loss for this production. b. Give the number of units that should be sold annually to break evenWeber Inc., sells its one product for $40 per unit. The variable cost per unit is $24. The fixed cost per year is $16,000a. What is the break-even point in units?b. What is the break-even point in dollars?c. If Weber would like to have $1,000 profit, how many units should be sold?d. If the selling price changes to $34 per unit, what is the new break-even point in units?
- A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal placesWhat is the EOQ for a firm that sells 5,800 units when the cost of placing an order is $5.20 and the carrying costs are $4.00 per unit? Round your answer to the nearest whole number. units How long will the EOQ last? Use the rounded value from the previous question. Assume 365 days in a year. Round your answer to the nearest whole number. days How many orders are placed annually? Assume 365 days in a year. Use the rounded value from the previous question. Round your answer to the nearest whole number. orders per year As a result of lower interest rates, the financial manager determines the carrying costs are now $2.2 per unit. What is the new EOQ? Round your answer to the nearest whole number. units What is the annual number of orders? Assume 365 days in a year. Use the rounded values of the new EOQ and duration of the new EOQ in your calculations. Round your answer to the nearest whole number. orders per yearABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…