The cost of producing per piece of an AVR is P23.00 for labor and P37.00 for direct materials. Another variable cost is P1.00 per unit AVR to be produced. The fixed costs is P100,000.00 per month. The AVR can be sold for P75.00 each. a. determine the number of units to be produced per month to break even. b. how many units are needed to earn an amount of P200,000/month?

The cost of producing per piece of an AVR is P23.00 for labor and P37.00 for direct materials. Another variable cost is P1.00 per unit AVR to be produced. The fixed costs is P100,000.00 per month. The AVR can be sold for P75.00 each. a. determine the number of units to be produced per month to break even. b. how many units are needed to earn an amount of P200,000/month?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

See similar textbooks

Similar questions

What is the fixed cost? what is the AVC quantity of 10 quantity. Total cost 0. 1000 10. 2000 20. 4000
major league baseball plans to sell special commemorative jerseys for the world series. the suppliers says that costs will be C(x)= 10x2-680x-20,000 dollras dor making x jerseys. MLB plans to sell them for 120 dollars each. how many jerseys must be sold for MLB to make a profit?
A heavy equipment manufacturing company has produced its first unit using 3500 hours and $300,000 overhead cost. The next unit, i.e. the second unit took 3300 hours. Overhead cost for this unit was $200,000. Suppose the labor was $20 per hour. Being the production manager, you need to decide what would be the total production costs for additional 10 units after the completion of the second unit. Round the final amount to nearest integer. $1,597,832 C$1,003,183 (DNone of the above
E-commerce has had an explosive growth in the last year due to the pandemic. Many different retail companies with home delivery have had a significant increase in sales. Imagine such a company with home delivery by trucks. Each truck costs NOK 600 per hour including all costs. The average distance per trip is 40 KM and they deliver approximately 60 packages per trip. a. Calculate the cost per delivery. Make your own assumptions for the parameters that affect the time of the processes, like speed, loading time and unloading time. What would be their price per delivery, if they want a profit of 5%? b. Discuss the risk for the transport provider in your price calculation.
T/F The fixed cost incur at even zero level of output.
ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
T/F The fixed cost remains same at all level of output.
sarah earns 400 per week and spends 15% of her earning on tranpotation every week
these are the drop down options Washes per hour dollars
What is the formulae used to find unit cost?
Most engineering students own a computer. What costs have you incurred at each stage of your computer’s life cycle? Estimate the total cost of ownership. Estimate the benefits of ownership. Has it been worth it
Cost Analysis A company manufactures fuel tanks for cars. The total weekly cost (in dollars) of producing X fuel tanks is given by.. C(x) = 10000 +90x - 0.05x² %3D Find the exact cost of producing the 501st item. (Round to the nearest 2 decimal places, if needed) HINT: Steps to fiınd actual or exact (cost/revenue/profit) 1. Find the cost of x = 5003B 2. Then find the cost of x = 501%3; 3. Then subtract ASUS 3 近