A plant operation has fixed costs of $1771001 per year, and its output capacity is 116606 electrical appliances per year. The variable cost is $38 per unit, and the product sells for $93 per unit. a.What is the break-even point in terms of units?

A plant operation has fixed costs of $1771001 per year, and its output capacity is 116606 electrical appliances per year. The variable cost is $38 per unit, and the product sells for $93 per unit. a.What is the break-even point in terms of units?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

See similar textbooks

Related questions

Q: Draw indifference curves for two goods x and y, where they are perfect complements with a fixed…

A: The indifference curve represents the different combinations of two good that provide same level of…

Q: Using the information below, what is the Gross Value Added at Market Price? Output Sold…

A: When output is valued at market prices, it is subtracted from intermediate consumption, which is…

Q: +Cash Flow -Cash Flow O 10 O 3.82 EOY O 30.13 Find the unknown value Q from the given information…

A: Cash flow alludes to the net balance of cash moving into and out of a business at a particular…

Q: The multiple by which total deposits can increase for every dollar increase in reserves is the Group…

A: In this question, we'll understand about each of the concepts : Money Multiplier Deposit Insurance…

Q: Which of the following is an example of fiat money? Group of answer choices A U.S. one-hundred…

A: Money is anything that is accepted as payment by people while buying and selling of product. There…

Q: If the quality of a good deteriorates while its price remains the same, then the value of a dollar…

A: Cost of living refers to the monetary cost of maintaining a particular standard of living. It is…

Q: AN INVESTMENT OF P270,000.00 ON COMPUTER SHOP WILL HAVE THE FOLLOWING DATA: UNIFORM ANNUAL…

A: The yearly worth is the sum of all the advantages and expenses over the course of a year. The annual…

Q: With reference to measurements of the dimensions of the Human Development Index which of the…

A: Human Development index is a tool that collectively measures the life expectancy, education and per…

Q: Data point X value is 110 and has an assigned weight of 3 Data point Y value is 290 and has an…

A: percentage weight of the total for data point Y = (weight assigned to Y/ total weights)*100

Q: John is a 55-year-old male smoker, about 50 pounds overweight, who has high blood sugar and drinks…

A: Adverse Selection occurs when either of the two parties involved in a transaction ie buyers and…

Q: What factors are responsible for unit product costs that differ from other global markets? Justify…

A: Production is the process of converting inputs into valuable outputs, that have some market value.…

Q: The expected real interest rate on bond will be less than the realized real interest rate if a…

A: Real interest rate doesn't include inflation. It is calculated by subtracting the inflation rate…

Q: Suppose there are three countries, A, B and C, in the world and A imports automobiles from either a…

A: When a group of countries agree to remove tariffs between theselves but their own external tariff is…

Q: What is the effect of a decrease in population (perhaps caused by the plague) on the market for…

A: A decrease in the population size will reduce the demand for land for home or investment purposes.…

Q: The monthly average variable costs, average total costs, and marginal costs for Alpacky, a typical…

A: Introduction: Average total cost : It refers to the total cost incur of per unit of production.…

Q: The average monthly balance in Yolanda's bank account is $1,800. Yolanda spends the same amount of…

A: The demand for money makes sense of the craving of individuals for a positive amount of money. Money…

Q: K At a government rent ceiling there will be A. more construction of rental housing. B. an increase…

A: Price Ceiling is a type of price control excercised by government where government sets up the…

Q: Which of the following is included in M2, but not included in M1? Group of answer choices travelers…

A: Money supply is measured by various methods. M1 includes travellers check , currency , demand…

Q: Refer to Figure 11.2. A decrease in nominal aggregate output, ceteris paribus, will likely Group of…

A: Money demand refers to people desires to keep their financial assets in the form of cash and demand…

Q: 2. Find the extremum of x2 + x3 subject to x₁ + 4x₂ = 2.

Q: A drawback of the linear probability model is that the error terms do not have a normal distribution…

A: The linear regression model with the binary dependent variable is called the "Linear Probability…

Q: Satchel loses his job and immediately begins looking for another. Other things the same, the…

A: Labor Force consists of both employed and unemployed people. Labor Force Participation Rate…

Q: What was the gold standard? What impact did the gold standard have on exchange rates?

A: Introduction ; Here we are discussing about the reason for the United States migrated from a…

Q: Dr. Tim bought a car for $11,600 in the year 2000. Suppose instead, he invested that money at 8%.…

A: Money Spent on car = 11600 Interest rate = 8% Inflation rate = 3% To find the value of invested…

Q: Suppose Amari operates a handicraft pop-up retail shop that sells cardigans. Assume a perfectly…

A: Total revenue refers to the product of price and quantity . Profits are maximized at the point where…

Q: What factors will shift the supply and demand for currency?

A: According to economic definitions, money is a good that acts as both a store of value and a means of…

Q: Consider an economy with the following information: S-40+.10 Yd IM = 20+.20*Yd T = 60+.25*Y I = 150…

A: Spending multiplier shows the impact of an initial level of government spending on the income level…

Q: Stock A has a price of $60 per share and you own 360 shares. Stock B has a price of $250 per share…

A: Given information: Stock A has a price of $60 per share and you own 360 shares. => Total value of…

Q: Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the…

A: Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the…

Q: The differences between venture capital and private equity primarily involve timing, volume, and…

A: Private equity are the ones who directly invest in the stable company whereas venture capital are…

Q: You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride…

A: Given:- Price elasticity of demand=-1.8 Total firms=3 Marginal cost=$11000 To calculate:- Price=?…

Q: A closed economy is represented by: Y = C+1+G C = 20+0.85YD G = 300…

A: Equilibrium values of income and interest rates are achieved when both the goods market and the…

Q: A plan for remodeling the downtown area of the city of Steubenville, Ohio, required the city to…

A: The rate of return created by an investment after taking into account all variables affecting…

Q: Use the generalized Nash bargaining solution to show that an individual's share increase with his…

A: To check the consequences of the changes in power we take and example , In this game seller is…

Q: Suppose an American business owner purchases chocolates from Belgium in order to sell them in her…

A: The answer provided below has been developed in a clear step by step manner.

Q: The Ingersoll Engineering Company is considering the purchase of a gas flow meter. Its purchase…

A: Initial cost = $9500(purchase price) + $500(shipping and installing price) = $10,000 MARR = 10% Tax…

Q: Based on the graph below, explain what would happen to the optimal level of abatement if there were…

A: Social cost of a given output refers to the sum total that is just enough to be paid in the form of…

Q: Assume that rational expectations exist and the economy is operating at potential GDP. If th Fed…

A: The theory of rational expectations refers to the theory suggesting that individuals in an economy…

Q: The table below uses data for the year 2003 provided by the Bureau of Labor Statistics and adjusted…

A: The labour force participation rates is calculated as the labour force divided by the total…

Q: You and your research partner want to use Instrumental Variable analysis to write an econometrics…

A: Randomized control trials are frequently regarded as the standard for determining causal…

Q: Define econometric in 200 words!

A: Econometrics refers to the use of statistical techniques to economic data in order to provide…

Q: Refer to Table 10.1. The required reserve ratio is 10%. If the First Charter Bank is meeting its…

A: Reserve are the part of deposit that is kept by the bank. The reserve is the product of reserve…

Q: Which of the following will most likely cause a decrease in the quantity of money demanded? Group of…

A: Law of Demand states that other things being constant as the price of good or service increases, the…

Q: When a tariff is imposed on a good, the price to consumers rises; rises falls; falls falls; rises…

A: When the tariff is imposed on a good the price for the consumer increases because it is like a hike…

Q: Refer to Figure 11.3. The demand for money curve will shift from Md1 to Md0 if Group of answer…

A: The Equilibrium interest rate is established where the demand and supply for money are equal. The…

Q: Suppose that you saved $4,700 at the beginning of the year and that at the end of the year your…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: eter's TV Supplies is considering a merger with Jan's Radio Supply Stores. Peter's total perating…

A: Average total cost is implied as the sum total of all production costs divided by the total quantity…

Q: rial machine costing produce net casn savings of $4,000 per year. The machine has a five-year useful…

A: Net present value (NPV) is the difference between the present worth of cash inflows and the present…

Q: Identify what trade and financial impact Brexit will have on the British?

A: Brexit is an abbreviation that denotes the exit of the British from the European Union.

Q: (a) if a company has total cost c(x)= 24,000+15x+0.2x^2 on total revenues given by R(x)=395x-0.8x^2,…

A: Break even is where the total profit is zero. => Profit = 0 => Total revenue - Total Cost =…

Question

A plant operation has fixed costs of $1771001 per year, and its output capacity is 116606 electrical appliances per year. The variable cost is $38 per unit, and the product sells for $93 per unit.

a.What is the break-even point in terms of units?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

It costs $50,000 to start a production process. Variable cost is $25 per unit and price is $45 per unit. What is the break-even volume? 2000 units 1000 units 1111 units 2500 units
A dining room set costs $400, less 30% and 10%. The overhead costs are 25% of cost and operating profit is 30% of cost. What is the break-even price of the set?
At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per ton MC ATC $175 AVC $115 $70 4,000 9,000 11,000 16,500 Steel Outp ut (in tons)
Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
Cost Analysis A company manufactures fuel tanks for cars. The total weekly cost (in dollars) of producing X fuel tanks is given by.. C(x) = 10000 +90x - 0.05x² %3D Find the exact cost of producing the 501st item. (Round to the nearest 2 decimal places, if needed) HINT: Steps to fiınd actual or exact (cost/revenue/profit) 1. Find the cost of x = 5003B 2. Then find the cost of x = 501%3; 3. Then subtract ASUS 3 近

ATC, AAC, AVC, MC (/uni 270.00 24000 21000 180.00 150.00 120.00 10:00 60.00 30.00 0:00 02 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Units of Output (0) Unit Cost Curves Refer to the graph above. The curves are not labeled. To help get this question right, you must first label the curves. An output level of 18 is identified with the dark vertical line. The shaded rectangular area (height times width) is the O average sunk cost. O total sunk cost O total avoidable fed cost. O total avoidable cost. O None of the above
A plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production capacity; annual revenues are $70,000 at this capacity. The selling price per unit is $35. a. At 80% capacity, what are annual sales in number of units? b. What is the variable cost per unit? c. What is the breakeven quantity?
Equipment purchased in 2006 for $36,000 must be replaced in late 2017. What is the estimated cost of the replacement equipment based on the following cost indices? TITI End of Year Index End of Year Index 2011 202 209 222 134 2004 2005 2006 2007 2008 2009 2010 2012 2013 149 155 2014 2015 2016 242 263 156 170 183 278 194 2017 289 (estimated) The estimated cost of the replacement equipment based on the cost indices provided is S (Round to the nearest dollar.) Enter your answer in the answer box.
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each How many new products must be sold in order to break even point?
A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?
Consider a power system with three generators. Each generator has a piecewise linear cost function defined by the following points. Generator 1 Generator 2 Generator 3 Production (MWh) 100 200 300 400 200 400 600 800 100 400 700 1000 Cost ($) 915 1760 2635 3540 1870 3530 5230 6970 1060 3460 6040 8800 The min/max production of each generator corresponds to the min/max production values in the table (i.e., Generator 1 produces at least 100 MWh and no more than 400 MWh). (a) Plot the inverse supply function for this system. (b) If the demand is completely inelastic and equal to 1600 MWh į. compute the electricity price. ii. calculate the gross consumer surplus, consumer surplus, the producers revenue, the producers profit, and the global welfare. iii. determine the production level, cost, revenue, and profit for each generator.
Best Ink Printing Co. received an order to print a minimum of 50,000 tickets for a concert. They have three printing machines available to meet the order they received. The set-up cost of these machines and the unit cost/ticket printed using each machine along with their maximum production are provided in the table below: Machine A B 976400 C Cost per unit $18 $21 $24 Maximum Production 30,000 25,000 30,000 Formulate an all-integer linear programming model to find the required number of tickets produced by each machine in order to minimize the production cost. What is the optimal solution for the number of tickets produced by machine B?