A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.

A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit. a) What is the current loss or profit? b) What is the breakeven point?.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Related questions

Q: Amerika lifts the quota that it applies on the products that it imports from Euro Area and at the…

A: The purpose of this question is to explain the exchange rate which change order the condition of…

Q: Which of the following given agencies has published expected loss-based ratings? (A) RBI (B)…

A: Expected misfortune-based evaluations assume an urgent role in surveying the reliability and chance…

Q: a. Show the optimum using indifference curves and a feasible set diagram. b. Show how this optimum…

A: Firstly we know that an indifference curve indicates an aggregate of items that supply a person…

Q: Figure 10-9 illustrates a period of a. economic recession and low inflation. b. economic growth and…

A: Inflation:It is a situation when prices of goods and services increase and the capacity to purchase…

Q: (a) For the cost function C(w₁, W2, y) 2y ww, calculate the Allen elasticity of substitution between…

A: The purpose of this question is to determine if the market is in its long-run equilibrium, consider…

Q: Consider two firms, i = 1; 2, producing differentiated products and engaged in Cournot a. Given the…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: An increase in taxes when the economy is above full employment OA. increases; falls B. increases;…

A: The objective of the question is to understand the impact of an increase in taxes on aggregate…

Q: A significant number of economists assume that that typical workers initially increase their labor…

A: This can be defined as a concept that shows the concept of the quantity of labor that individuals…

Q: Assume that countries A and B operating in the immobile factor model have identical labor…

A: The question is asking us to determine the validity of several statements given the assumption that…

Q: If in an economy the tariff rates rise and at the same time the per capita income in the economy…

A: The aim is to show the potential effects of rising tariffs and per capita income on the exchange…

Q: Every value in a payoff matrix represents: the gains and losses of decisions for each player…

A: The objective of the question is to understand what each value in a payoff matrix represents in the…

Q: marginal utilities

A: Pareto optimality, named after the Italian economist Vilfredo Pareto, is an idea in welfare…

Q: Consider the Specific Factors model with two countries, Home and Foreign, with two goods, cars (c)…

A: In the modern global environment, many firms are considering specializing in the production of a…

Q: 1(a) (b) (c) 2 (b) (c) The following statistics are given relating to a hypothetical closed economy…

A: The objective of the question is to calculate various economic parameters such as tax revenue,…

Q: Which cost concept is used to determine the level of output at which a firm neither makes a profit…

A: While inspecting the monetary parts of a business, different cost ideas become an integral factor.…

Q: (a) Explain the law of diminishing marginal utility with the aid of a numerical example. Make sure…

A: Diminishing marginal utility, a foundational idea in economics, elucidates the declining…

Q: Describe several ways in which consumers are less than free in making choices about which products…

A: The question aims to explore the various factors that limit the freedom of consumers in making…

Q: Calculate how much money a prospective homeowner would need for closing costs on a house that costs…

A: Closing costs are the expenses over and above the property's price that sellers and buyers incur to…

Q: 1. (Figure 9.7) The levels of producer surplus under monopoly and perfect competition are Price (S)…

A: Producer surplus refers to the total amount that a producer benefits from producing and selling a…

Q: What is the theory of bureaucratic behavior and how can it be used to explain the behavior of the…

A: The theory of bureaucratic behavior is a concept in political science and economics that explains…

Q: The table below shows the number of gallons of Wine and pounds of Cheese produced in the United…

A: International trade:International trade means buying and selling goods and services from outside the…

Q: Question Four Assume the following IS-LM model: Expenditure Sector AD = C + I + GC = 130+ (4/5) YD…

A: The objective of this question is to show the IS and LM schedules, find equilibrium levels of income…

Q: 4. Sheila and Bruce are going backpacking. Sheila and Bruce each have 24 power bars (x) and 24…

A: The aim is to explain their marginal rate of substitution (MRS) at an entry point, illustrate it in…

Q: Which is the correct formula for calculating the percent change in price from a shift in demand? O…

A: Elasticity measures the responsiveness of quantity demanded or supplied to changes in price or other…

Q: What interest rate would make it worthwhile to incur a compensating balance of $11,000 in order to…

A: A compensating balance is a portion of a loan that is retained by the bank. This is still subject to…

Q: Refer to the data in the table below. Suppose that the present equilibrium price level and level of…

A: Initial equilibrium price level is 100. Initial equilibrium real GDP is $255.The aggregate supply in…

Q: private good"

A: Private goods are a category of products in economics that exhibit essential traits: excludability…

Q: With the use of a central bank, which of the following becomes less and less important over time?…

A: The question is asking which of the listed items becomes less important over time with the use of a…

Q: Place the grey point (star symbol) in the appropriate location on the graph to indicate the monopoly…

A: A monopoly is a market structure where numerous buyers and a single seller coexist. In the market,…

Q: Analysis of the Great Depression indicates that a. even though monetary and fiscal policies were…

A: The objective of the question is to understand the economic conditions and policies during the Great…

Q: Explain the difference between the natural rate of unemployment and the actual rate of unemployment…

A: The objective of this question is to understand the difference between the natural rate of…

Q: Consider two consumers with preferences Where Ti is the tax levied in jurisdiction i and Gi is…

A: The aim is to analysis is divided into three parts: introducing the amount of public goods preferred…

Q: Explain the connection between a government budget deficit and a government debt.

A: The correct answer is B. Statements 1 and 4 are correct.Government budget deficitA budget deficit…

Q: [B] The data pertaining to the various components of the money supply in India are as follows…

A: Money stock, in basic terms, is the overall sum of money in circulation within an economy at a…

Q: Refer to Figure 9-17. When the country moves from no trade to free trade, consumer surplus O…

A: Consumer surplus is the benefit for consumer arises by purchasing the good at price lower than…

Q: Going from a regulated to a non-regulated industry led to bankruptcies in the airline industry. This…

A: Financial market:It is a market where there is buying and selling of financial securities. It…

Q: Suppose that the fixed costs of 0.72 consist of an attributable fixed cost for good 1 of 0.12, an…

A: The purpose is to find out if Ramsey's prices are free. The several steps, including deriving…

Q: The graph shows the relevant cost curves for a perfectly (or purely) competitive firm. What value…

A: In economics, particularly general equilibrium theory, a perfect market, also called an atomistic…

Q: 1. The MRP curve for labor: A. intersects the firm's labor demand curve from above. B. is…

A: The objective of the question is to understand the relationship between the Marginal Revenue Product…

Q: Which cost concept is used to determine the most cost-efficient level of production? a) Average cost…

A: Prior to jumping into the particular cost concept used to decide the most cost-effective degree of…

Q: Use the following Taylor rule to calculate what would happen to the real interest rate if inflation…

A: Taylor's rule is a monetary policy guideline that explains how central banks, like the Federal…

Q: Does a subsidy lead to a deadweight loss?

A: Whether a subsidy leads to deadweight loss depends on the specific circumstances of the subsidy. In…

Q: The Based on the following equations Saving (S)= 0.2Y Investment(1)= - 30r + 740, Money Supply(Ms)=…

A: The interplay of money demand and supply holds significance in an economy, shaping inflation,…

Q: Which of the following involves signaling? Choose one answer. a. high wage rates attracting a larger…

A: The objective of the question is to identify which of the given options involves signaling.…

Q: Overseas investments by U.S. citizens are recorded as credit items in the capital account of the…

A: Exchange rate:It is the rate at which currencies are exchanged for another currency. It affects the…

Q: Cookie Monster always consumes cookies and milk in fixed proportions: 4 cookies to 8 ounces of milk.…

A: The objective of the question is to determine which combination of cookies and milk will provide the…

Q: The adult population is divided into three groups: employed, unemployed, not in the labor force. The…

A: You're correct, based on the latest TUIK labor force statistics for October 2023, the largest group…

Q: Although price discrimination never occurs in perfect competition, it may occur in monopolistic…

A: Here, in this question Price discrimination refers to the strategy used by firms to charge different…

Q: If the market price for the perfectly competitive firm represented in Figure 1.5 is $4... Figure 1.5…

A: Perfectly competitive market is one in which there are large no of buyers and sellers in the market.…

Q: Assume that the production technology is such that each unit of output requires one unit of labor…

A: The purpose of this question is to show the consumption and supply curve by maximizing utility with…

Question

A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is $430,000.00. Annual fixed costs are $190,000.00 and the variable costs are $0.348 per unit.

a) What is the current loss or profit?

b) What is the breakeven point?.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define cost

VIEW

Step 2: Calculate Current Loss or Profit

VIEW

Step 3: Calculate Breakeven Point

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A shoe company manufactures and sells a pair of shoes with the following cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: Expenses types Advertising Rent AED 388,348 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,0007
At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per ton MC ATC $175 AVC $115 $70 4,000 9,000 11,000 16,500 Steel Outp ut (in tons)
A shoe company manufactures and sells a pair of shoes with the folowing cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: Expenses types Advertising AED 388,348 Rent 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,000?
A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. What is the break-even price of the set?
Boeing Aircraft collected the following cost data on the first 8 units of its new business jet. Unit Number Cost ($ millions) Unit Number Cost ($ millions) $100 83 73 62 60 57 53 51 a. Estimate the learning curve for the new business jet. b. Estimate the average cost for the first 1,000 units of the jet. c. Estimate the cost to produce the 1,000th jet.
If explicit cost equals to $40000 and implicit cost $ 95,000 and the accounting profit is $23,000 what is the revenue and the economic profit
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
Consider a power system with three generators. Each generator has a piecewise linear cost function defined by the following points. Generator 1 Generator 2 Generator 3 Production (MWh) 100 200 300 400 200 400 600 800 100 400 700 1000 Cost ($) 915 1760 2635 3540 1870 3530 5230 6970 1060 3460 6040 8800 The min/max production of each generator corresponds to the min/max production values in the table (i.e., Generator 1 produces at least 100 MWh and no more than 400 MWh). (a) Plot the inverse supply function for this system. (b) If the demand is completely inelastic and equal to 1600 MWh į. compute the electricity price. ii. calculate the gross consumer surplus, consumer surplus, the producers revenue, the producers profit, and the global welfare. iii. determine the production level, cost, revenue, and profit for each generator.
A company makes and sells toasters. To make the toasters there is a fixed monthly cost of $27,000 and an additional production cost of $30 per toaster. The toasters sell for $75 each. (a) Write down the cost function. (b) Write down the revenue function. (c) Find the profit function. (d) Find the break even point. (e) How many toasters must the company sell to make a 15% profit?
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
The figure shows graphs of the total cost function and the total revenue function for a commodity. (Assume cost and revenue are measured in dollars.) 500 400 300 200 100 میرا 10 20 30 (a) Label each function correctly. function A -Select- function B -Select- (b) Determine the fixed costs. (c) Locate the break-even point. A B 40 50 60 Determine the number of units sold to break even. units (d) Estimate the marginal cost MC and marginal revenue MR. MC = MR-
The variable cost for the small business is shown below. What is the marginal cost and average cost at a volume of 14 units? Cost $8000 $6000 $4000 $2000 $200/unit Volume marginal cost: $200/unit, average cost: $476/unit O marginal cost: $200/unit, average cost: $300/unit O None of them marginal cost: $300/unit, average cost: $800/unit $300/unit 10 Total cost Variable cost Fixed cost 15