Fixed cost allocation rates should be determined using Select one: a. Short-term expected usage b. Long-term expected usage C. Short-term average usage d. Past production capacity
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- Small and medium sized contractors are most likely to keep ony____on staffA certain company has a selling price of for their product of 1500-3/4x dollars per unit and fixed costs of $800 and variable costs of 1/4x+1210 dollars per unit, where x is the total number of units produced. A.) FInd the Break even point? B.) When will the company make profit? C.) What is the make profit and the corresponding production level?A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 75 – 0.1D units (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,000 per month and the variable cost is $30 per unit produced. Solve, a. What is the maximum profit per month related to thisproduct? b. What is the range of profitable demand during a month?
- A company's unit costs based on 500,000 units are: Variable costs $32 Fixed costs 20 The normal unit sales price per unit is $110. A special order from a foreign company has been received for 4,000 units at $90 a unit. In order to fulfill the order, 2,000 units of regular sales would have to be foregone. The opportunity cost associated with this order is A) $64,000. B) $180,000. C) $220,000. D) $156,000.Total variable cost is 0 at zero level of production True/Falss(a) How would one estimate the full cost to an airline if one of its planes is held over for 24 hours in an airport for repair? (b) A company has spent $10 million to develop a product for market. During the product’s first two years, the company’s profit was $6 million. In recent years, the market was flooded by rival products and now the company is reassessing its product. If it abandons the product, it can recover $2 million of its original investment by selling its production facility. If it continues to produce the product, its estimated revenues for successive two-year periods will be $5 million and $3 million and its costs will be $4 million and $2.5 million. (After four years the plant will have zero resale value.) What would be the company’s best course of action? (c) Two decades ago, the global demand and supply curves for copper were: Qd = 15-10P and Qs = -3 + 14P, where Q is measured in millions of metric tons per year. Find the competitive price and quantity. Suppose that…
- A manufacturer of Chocolate has a fixed cost of Tk.60000 and variable cost is Tk.7 perproduced Chocolate. Selling price is Tk.10 per Chocolate.Requirement- At what number of units will break even occur and At what sales (revenue) volume will break occur?A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 78 – 0.11D units. The fixed cost is $800 per month and the variable cost $32 per unit produced. What number of units, D*,should be produced per month and sold to maximize the profit per month related to the product? Round your answer to 2 decimal places.A book publisher wants to know how many times a year a print run should be scheduled. Suppose it costs ?$1300 to set up the printing? process, and the subsequent cost per book is so low it can be ignored. Suppose further that the annual warehouse cost is ?$7 times the maximum number of books stored. Assuming 4900 copies of the book are needed per? year, how many books should be printed in each print? run? Note that since the warehouse cost is based on the maximum number of books held and not the? fM k k should be used average, the equation to determine the order quantity. The publisher should print books in each print run.
- A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?please discuss this statement “Thw technical pattern that statistically significant could be economically insignificant.”1. Compute the contribution margin per unit if the total fixed cost is P400, 000 and breakeven point is 4,000 units. a. P25 b. P100 c. P2, 500 d. P1, 000 2. What is the contribution margin ratio when the fixed costs are P13, 000, 000, the sales are P25, 000, 000, and the variable costs are P10, 000, 0000? a. 40% b. 48% c. 60% d. 52% 3. Which of the following is the value that we need to consider that will contribute towards covering fixed cost and providing for profit?* a. contribution margin b. net margin c. gross profit d. gross margin