Question
In: Economics
(Engineering economics) 4. Assume that you have a company and have to make some decisions based...
(Engineering economics)
4. Assume that you have a company and have to make some decisions based on calculated costs for a line of products. The givens are in the table below:
Givens
Units produced & expected to sell 30,000
Direct labor $300,000
Direct Materials $150,000
Manufacturing Overhead:
Variable portion $100,000
Fixed portion $80,000
Selling and administrative costs:
Variable portion $180,000
Fixed portion $70,000
Based on the above givens determine the following:
a) The manufacturing cost per unit.
b) The break-even selling price per unit.
c) What should be your selling price per unit if you want to make a profit of $100,000?
d) What will be the unit contribution margin based on the selling price determined in question c)?
Assume that you can manufacture an additional 20% of units without increasing the basic operating capacity (no additional equipment, no additional rental space etc.).
e) Determine your new manufacturing cost per unit.
f) Determine your new break-even selling price per unit.
(in excel with formulas please)
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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