Question
In: Economics
A wireless Bluetooth headphone manufacturer has a variable cost are $20 per unit, and fixed costs...
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 should produce to maximize its total revenue? Show your steps for getting full credit.
A) 200
B) 250
C) 500
D) None of these
2.3. Determine the number of wireless headphones the company should produce to maximize its profit? Show your steps for getting full credit.
A) 420
B) 460
C) 480
D) None of these
2.4. Based on the answer computed in 2.3, the maximum profit earned by the company will be equal to ________________. Show your steps for getting full credit.
A) 42025
B) 41625
C) 41925
D) None of these
2.5. The learning curve percentage is 80% if the learning curve exponent is given as -0.3214. (True or False) Show your steps for getting full credit.
A) True
B) False
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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Continuing from the prior problem, Gideon is
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93,333 units
33,333 units
50,000 units
200,000 units
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Steven Company has fixed costs of $239,080. The unit selling
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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...
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
$780
Y
473
253
220
The sales mix for products X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units
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further that the selling price of its product is
1767 −5/9x dollars per unit.
(a) Find the break-even points. (Enter your answers as a
comma-separated list.)
x =
(b) Find the maximum revenue. (Round your answer to the nearest
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$
(c) Form the profit function P(x) from the cost
and...
Suppose a company has fixed costs of $48,000 and variable cost per unit of 4 9...
Suppose a company has fixed costs of $48,000 and variable cost
per unit of
4
9
x + 333 dollars,
where x is the total number of units produced. Suppose
further that the selling price of its product is
2357 −
5
9
x dollars per unit.
(a) Find the break-even points. (Enter your answers as a
comma-separated list.)
x =
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$
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Assuming that Bargain Electronics has excess operating capacity,
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In the Whine Company,
it costs $30 per unit ($20 variable and $10 fixed) to make a
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shipping costs of $2 per unit.
Required:
Assuming that the Whine
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for the year if Whine Company accepts the special order? Show
computations..
Do you agree with the decision...
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