Q1) A well-known firm produces automobiles. The planning team needs to decide how many items to...

Q1) A well-known firm produces automobiles. The planning team needs to decide how many items to produce monthly. The monthly fixed cost is $42,000 and variable costs are $3 per charger. Items sell for $7 each.

a. Draw a table showing fixed costs, variable costs, total costs, total revenues, and total profits, for monthly volumes of 10,000, 12,000 and 15,000 units.

b. What is the break-even point?

c. Determine profit when volume equals 25,000 units.

Expert Solution

a.

b.Breakeven is when revenues = costs

Assuming ‘a’ number of units at breakeven

Revenue = 7*a

Costs = 42000+ 3*a

42000 + 3*a = 7*a
42000 = 4*a
a = 10500

Therefore breakeven is 10500 units

c. Profit when volume is 25000 units = Revenue – Costs

Revenue = 7*25000= 175000

Costs = 42000+ 3*25000 = 42000 +75000 = 117000

Profit = 175000 – 117000 = $58000

keosha answered 2 years ago

The Hyundai dealer at Muscat needs to decide on how to ship new automobiles from two...

The Hyundai dealer at Muscat needs to decide on how to ship new automobiles from two ports (Sohar and Muscat) to four of their agencies in Muscat, Sohar, Nizwa and Salalah. The following table summarizes the transportation costs incurred per automobile (in OMR). Muscat Sohar Nizwa Salalah Capacity Muscat 20 80 60 150 200 Sohar 70 20 50 200 100 Demand 100 80 40 60 Formulate a linear program to determine the least costly shipping plan. Clearly define the decision...

Suppose that you are a member of a team assembled to examine needs and decide on...

Suppose that you are a member of a team assembled to examine needs and decide on an IT strategy of non-profit organization. What are the steps you will take in understanding the needs, the costs, alternatives and implementation?

Example of a Strategic Planning of a well-known company. Should consist of the strategic planning key...

Example of a Strategic Planning of a well-known company. Should consist of the strategic planning key elements: Mission Statement, Corporate Scope, Statement of Corporate Objectives, Corporate Strategies, Operating Plan, & Financial Plan. Explain each.

: A concert promoter needs to decide how many concert T- shirt to order supplied with...

: A concert promoter needs to decide how many concert T- shirt to order supplied with its logo name on the front side of T-shirt. The profit on each one sold at the concert is 50 L.E. and any unsold T-shirt and returned to the supplied company will cause a loss of 30 L.E for the promoter. Demand is uncertain but is estimated to be between 200 to 1000 T-shirt. The probabilities of different demand levels are as follows: Demand...

The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine...

The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter. Each TV spot costs $6000 and is expected to increase sales by 400,000 cases. Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases. A total of $100,000 may be spent on TV and magazine ads combined. However Mountain mist wants to spend no more than $70,000 on tv spots and no more...

AVP of a manufacturing firm that produces two products has to decide (1) How much capacity...

AVP of a manufacturing firm that produces two products has to decide (1) How much capacity to build? (2) Whether to invest in dedicated or flexible resources, or a portfolio consisting of both dedicated and flexible systems. The VP received the following forecasting for the demand of each product. Year 1–2 Year 3–6 Volume Volume Probability Product A 500,000 200,000 0.7 600,000 0.3 Product B 200,000 200,000 0.3 600,000 0.7 A dedicated line can produce 300,000 annually and its cost...

Cosmopolitan magazine (Cosmo as it's popularly known) publishes many of it's well-known quizzes on its Web...

Cosmopolitan magazine (Cosmo as it's popularly known) publishes many of it's well-known quizzes on its Web site. One quiz is titled "Are You Obsessed with Appearances?" Consider whether you want to use the quiz data to determine how obsessed women are with their appearance.(1) Describe the typical person who might respond to this quiz.(2) Indicate the danger of relying on volunteer samples in general.

Solve the scissors, paper, rock game. This game is well known in many parts of the...

Solve the scissors, paper, rock game. This game is well known in many parts of the world. Two players simultaneously present a hand in one of three positions: an open hand (paper), a closed fist (rock), or two open fingers (scissors). The payoff is 1 unit according to the rule “Paper covers rock, rock breaks scissors, and scissors cut paper.” If both players present the same form, the payoff is 0. Set up the payoff matrix for the game and...

You work for a well-known regional CPA firm and are the senior auditor in charge of...

You work for a well-known regional CPA firm and are the senior auditor in charge of the fieldwork for a medium sized manufacturing company in the Chicago metro area. The company has been a client for over ten years and there have never been any concerns with the company's systems of controls or their accounting practices. Accordingly, RMM has been considered to be low and audits have been able to place reliance on tests of controls. The interim fieldwork included...

If you were planning a community needs assessment, what are some components of team strategy you...

If you were planning a community needs assessment, what are some components of team strategy you would develop?

Question