Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION
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T/F
The fixed cost remains same at all level of output.
Fixed cost is $2600, variable cost per unit is $100 and selling price is $60. Find Break Even Point and Total Revenue.
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Variable cost changes or vary with the change in the level of output in a production process.
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- Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and unit variable costs of $5 per pair. If the company charges $15 per pair, how many pairs must it sell to break even?arrow_forwardipants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? Please select any/all correct responses below: Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags. Using the profit-maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 200 bags. Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize…arrow_forwardA firm fixed cost are $2000 and firm total cost of producing 100 units is $4000arrow_forward
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- Jenkins Ltd manufactures remote control cars which sells for $500 each. The fixed cost is $70000 and the variable cost per unit is $300. Jenkins sold 200 units of car. Find the total cost and total revenue for Jenkins Ltd.arrow_forwardimpact of fixed and variable cost on break even analysisarrow_forwardClassify the cost elements shown below for the Impressive Printing Company into the proper quality cost categories. Cost Element Amount Quality Cost Category Customer complaint remakes $28,300 -Select Printing plate revisions $25,700 -Select- Quality improvement projects -Select- Gauging Select Other waste -Select Correction of typographical errors Proofreading Quality planning Press downtime Bindery waste Checking and inspection $14,900 $98,000 $34,900 $197,000 $400,000 $51,200 Quality Cost Category Prevention Appraisal Internal failure External failure $262,700 $57,000 $31,400 -Select -Select- Total Amount $ $ S $ -Select- -Select Select Select V V Find the total quality cost by category and percentage of total quality cost by category. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. V Percentage of Total Quality Cost % % % %arrow_forward
- Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.arrow_forwardBags/Participants Fixed Cost Variable Cost Total Cost $1,700 $- $1,700 100 $1,700 $500 $2,200 200 $1,700 इ1,200 $2,900 $1,700 $2,700 $4,400 300 $1,700 $5,200 $6,900 400 $1,700 $9,000 $10,700 500 $16,700 $1,700 $15,000 600 $1,700 $23,800 $25,500 700 $36,800 $38,500 $1,700 800 $55,800 $57,500 $1,700 900 $84,700 $83,000 $1,700 1,000 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? Please select any/all correct answers: Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags. %3D O Using the profit-maximizing rule, MR 2 MC, the quantity of bags that will maximize profits is 200 bags. O Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize profits is 300 bags. O The break even quantity cannot be determined in this case. «< Question 2 of 9 A Moving to another question will save this…arrow_forwardA company manufactures and sells book-cases .The selling price is $54.90 per book case.The total cost.The total cost function is linear, and cost amounts to $50,000 for 2,000 book-cases and $32,120 for 800 book-cases. (a)Write the equation for revenue.(b)Write the equation for total cost. (c)Find the break even point.arrow_forward
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