In: Accounting

Suppose a company has fixed costs of $48,000 and variable cost per unit of

4 |

9 |

* x* + 333 dollars,

where *x* is the total number of units produced. Suppose
further that the selling price of its product is

2357 −

5 |

9 |

* x* dollars per unit.

(a) Find the break-even points. (Enter your answers as a
comma-separated list.)

* x* =

(b) Find the maximum revenue. (Round your answer to the nearest
cent.)

$

(c) Form the profit function *P*(*x*) from the cost
and revenue functions.

* P*(

Find maximum profit.

$

(d) What price will maximize the profit? (Round your answer to the
nearest cent.)

$

Suppose a company has fixed costs of $47,600 and variable cost
per unit of 4/9x + 333 dollars,
where x is the total number of units produced. Suppose
further that the selling price of its product is
1767 −5/9x dollars per unit.
(a) Find the break-even points. (Enter your answers as a
comma-separated list.)
x =
(b) Find the maximum revenue. (Round your answer to the nearest
cent.)
$
(c) Form the profit function P(x) from the cost
and...

1) Suppose that a company has fixed costs of $15 per unit and
variable costs $11 per unit when 15,500 units are produced. What
are the fixed costs per unit when 11,000 units are produced?
2)Total costs for ABC Distributing are $240,000 when the
activity level is 9,000 units. If variable costs are $3.0 per unit,
what are their fixed costs?
3)Park and West, LLC, provides consulting services to retail
merchandisers in the Midwest. In 2019, they generated $750,000 in...

Steven Company has fixed costs of $239,080. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price
per unit
Variable Cost
per unit
Contribution Margin
per unit
X
$1,248
$468
$780
Y
473
253
220
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units...

Steven Company has fixed costs of $239,080. The unit selling
price, variable cost per unit, and contribution margin per unit for
the company's two products are provided below.
Product
Selling Price
per unit
Variable Cost
per unit
Contribution Margin
per unit
X
$1,248
$468
$780
Y
473
253
220
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units

Suppose a company has fixed costs of $5,500 and variable costs
per unit of 7/8x + 1,040 dollars,
where x is the total number of units produced. Suppose
further that the selling price of its product is 1,200 − 1/8
x dollars per unit.
(a)
Form the cost function and revenue function (in dollars).
C(x)
=
R(x)
=
Find the break-even points.
x =
50,110
(b)
Find the vertex of the revenue function.
(x, y) =
Identify the maximum revenue....

A company has $30 per unit in variable costs and $1,200,000 per
year in fixed costs. Demand is estimated to be 104,000 units
annually. What is the price if a markup of 40% on total cost is
used to determine the price?

Your company has fixed costs of $150,000 per year. The variable
costs per unit in 2018 were $3 per unit, and 30,000 units were
produced that year. Your company uses cost-based pricing and has a
profit margin of $3 per unit. In 2019, production increased and
your team had more experience—variable costs went down to $2 per
unit because of your team’s higher skill and 65,000 units were
produced that year. What is the change in selling price from 2018...

Assume Phony Company has variable costs per unit of $23, fixed
costs of $600,000, and a break-even point in units of 60,000 units.
If the sales price per unit decreases by $4 and the variable cost
per unit decreases by $4, what would happen to the break-even
point?
A. Break-even point stays the same.
B. Break-even point increases.
C. Break-even point in dollars decreases.
D. Break-even point in dollars decreases and break-even point in
units stays the same.

Bob makes widgets. Variable costs per unit are $2. Fixed cost
per unit (at an output level of 100) are $1 per unit. The normal
sales price per unit is $5. A customer approaches Bob offering to
buy 40 widgets for $4 each. Assume Bob has excess capacity.
1) What is the effect on operating income if he accepts the
order? Additional revenue – additional cost = effect on oper.
income. Fixed costs won’t change so additional costs = VC...

A wireless Bluetooth headphone manufacturer has a variable cost
are $20 per unit, and fixed costs are $10,875. The company’s
management has developed a price-demand relationship for this
wireless headphone, P=-0.25D+250, where P is the product’s unit
sales price, and D is the annual demand.
2.1. The breakeven volume for this product is ____________. Show
your steps for getting full credit.
A) 920
B) 870
C) 790
D) None of these
2.2. Determine the number of wireless headphones the company...

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