Question

In: Finance

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and...

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)

Use excel and excel formulas

Solutions

Expert Solution


Related Solutions

Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense.
Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)(Use Excel...
K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.00 per pair in variable raw material...
K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.00 per pair in variable raw material costs and $22.95 per pair in variable labor expense. The shoes sell for $136 per pair. Last year, production was 160,000 pairs. Fixed costs were $1,120,000.    What were total production costs? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)      Total production cost $       What is the marginal cost per pair? (Do not round intermediate...
K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material...
K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material costs and $25.45 per pair in variable labor expense. The shoes sell for $140 per pair. Last year, production was 110,000 pairs. Fixed costs were $1,150,000. What were total production costs? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.) Total production cost $ What is the marginal cost per pair? (Do not round intermediate calculations. Round your...
You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike material in its tennis rackets.
You are the financial analyst for a tennis racket manufacturer. The company is considering using a graphitelike material in its tennis rackets. The company has estimated the information in the following table about the market for a racket with the new material. The company expects to sell the racket for 4 years. The equipment required for the project will be depreciated on a straight-line basis and has no salvage value. The required return for projects of this type is 12...
The demand for tennis rackets can be characterized by the following point elasticities
The demand for tennis rackets can be characterized by the following point elasticities: price elasticity = -1.5, cross-price elasticity with tennis club membership fees= -2.0, and income elasticity = 3.0. Indicate whether each of the following statements is true or false, and explain your answer.A. A price increase for tennis rackets will decrease both the number of units demanded and the total revenue of sellers.B. The cross-price elasticity indicates that a 2% reduction in the price of tennis rackets will...
Conch Republic can manufacture the new smart phones for $300 each in variable costs. Fixed costs...
Conch Republic can manufacture the new smart phones for $300 each in variable costs. Fixed costs for the operation are estimated to run $4.3 million per year. The estimated sales volume is 75,000, 95,000, 125,000, 130,000, and 140,000 per year for the next five years, respectively. The unit price of the new smart phone will be $650. The necessary equipment can be purchased for $61 million and will be depreciated on a seven-year MACRS schedule. It is believed the value...
Conch Republic can manufacture the new smart phones for $300 each in variable costs. Fixed costs...
Conch Republic can manufacture the new smart phones for $300 each in variable costs. Fixed costs for the operation are estimated to run $4.3 million per year. The estimated sales volume is 75,000, 95,000, 125,000, 130,000, and 140,000 per year for the next five years, respectively. The unit price of the new smart phone will be $650. The necessary equipment can be purchased for $61 million and will be depreciated on a seven-year MACRS schedule. It is believed the value...
The request business is planning to manufacture a new type of tennis ball. Each tennis ball...
The request business is planning to manufacture a new type of tennis ball. Each tennis ball would sell for 3.75 and would require 1.75 in variable costs. In addition, annual fixed costs associated with the project would total 64,000. (A) use the contribution margin approach to calculate: (1) the breakeven point in units (2) the breakeven point in dollars (B) determine the operating income or loss at a sales volume of 30,000 tennis balls. (C) determine the number of tennis...
"La Yuca" company produces raw material for the alcapurrias industry. It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package.
"La Yuca" company produces raw material for the alcapurrias industry. It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package. a) determine the total cost to produce # 2,000 packages b) determine the cost per unit, average cost, for the # 2,000 packages c) How much can the fixed cost go down if you want to make a profit of $ 3,000.00 per week?
An archaeologist wants to know if raw material used by prehistoric Indians for stone tool manufacture...
An archaeologist wants to know if raw material used by prehistoric Indians for stone tool manufacture us independent of the excavation site. Alpha = .05 Material Site A Site B Total Basalt 731 584 1315 Obsidian 102 93 195 Pedernal chert 510 525 1035 Other 85 94 179 Total 1428 1296 2724 What can you conclude about the results?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT