Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A is equal to $200,000. The variable cost associated with producing one water bottle is $5 per unit. The water bottle is sold at a premium price of $10. What is the production of the company at break even point? OA) 50.000 the O B) 25.000 Oc) 40.000 OD) 30.000 OE) 20.000

Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A is equal to $200,000. The variable cost associated with producing one water bottle is $5 per unit. The water bottle is sold at a premium price of $10. What is the production of the company at break even point? OA) 50.000 the O B) 25.000 Oc) 40.000 OD) 30.000 OE) 20.000

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 7MC

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Ali is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A is equal to $200,000. The variable cost associated with producing one water bottle is $5 per unit. The water bottle is sold at a premium price of $10. What is the production of the company at break even point? OA) 50.000 OB) 25.000 1710058 7185058 OC) 40.000 O D) 30.000 OE) 20.000 1718005 171895058
A firm has the following information on production Q.6 and costs from past data: Output Total Cost (ТC) (Y) 6. 12 18 9. 2775 5361 8199 If the total function is known cost to be ТС - аY + br+kY+ f. and the demand for the %3D product of the firm is Y = 320- (1/2). P answer the following: Determine the coefticients of the cubic cost function. Derive all cost and revenue curves and the profit function. Show that the MC cuts the AVC when AVC is at its minimum point. Plot the relevant graph indicating all points. Calculate the break even and profit maximizing levels of oulput and price. What is the relationship between price, marginal revenue and own price elasticity of demand at maximization point. the profit
A manufacturing Company has estimated its quarterly demand (units) as shown in the following table. It expects the next demand cycle to be similar to this one and wishes to restore ending inventory, employment, etc., to beginning levels accordingly. Quarter Units 1st 2250 2nd 2800 3rd 1700 4th 1600 Each quarterly change of 300 units output has an incremental labour cost of OMR. 1,600, and ending levels must be restored to initial levels. What is the cost associated with changing the work force size? (Write the number only) Answer:
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