Suppose you manufacture 10 million hard drives per year specifically for Dell laptop computers. If your average variable cost C=$20/unit, annualized cost of investment to build a hard drive factory I=$30 million, and market price (bailout market price in the event Dell does not buy) Pm=$22/unit, what is your company's RSI (relationship specific investment)?
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- Price and cost ($ per 1,000-gallon unit) Return t A municipal water utility employs quasi-fixed capital inputs-the water treatment plant and distribution lines to homes-to supply water to 20,000 households in the community it serves. The figure below shows the cost structure of this utility for various levels of water service. Quantity of water consumption is measured in 1,000-gallon units per month. AQFC is the average quasi-fixed cost curve, and LAC is long-run average cost. Long-run marginal cost, LMC, is constant and equal to $4 per 1,000-gallon unit. The inverse demand equation is P= 24 -0.0004Qd 10 14 MR Quantity (1,000-gallon units per month) Quasi-fixed capital inputs cost per month is $ LAC AQFC LMC DMarginal cost function (C'(q)) and marginal yield function ('R(q)) to extract a smartphone is as follows in the figure where C'(q) , R'(q) are measured in RM/unit and q is quantity (units).The fixed cost of manufacturing such a smartphone is zero. With using the concept of integration, determine: a) the total cost to manufacture 4 units of smartphones. b) function of the total revenue for the smartphone. c)tc(q)=4800+5q** find the ATC ATC=TC/q
- EXAMPLE 1.1 Alpha Associates has the following details:Fixed cost = Rs. 20,00,000Variable cost per unit = Rs. 100Selling price per unit = Rs. 200Find the break-even sales.MBA Company sells a single product for 2500 HUF/unit. You know the following information: The total cost function is: K(x) = 240 000 000 + 1 300 * x. The owner's equity counts for 300 million HUF. The debt (average) is 100 million HUF. The calculated rate of capital yield requirement is 17.5 percent. The interest of the debt is 10 percent. Amortisation takes 120 million HUF. Management believes, that the real opportunity for the company is selling of 150 000 units. Choose the missing answers! As the turning point of profitability is • units, the company will realize a of HUF in case of selling 150 000 units. In case of that volume the selling price should be HUF per unit in order to company's operation be profitable.A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit.
- Your friend Claire has been designing her own hoodies and giving them as gifts to friends and family. She has decided to sell them online soon by using a 3rd party website with a service surcharge based on her pricing. Using the information below, what is the relationship between Claire's selling price per hoodie and profit margin? (Please plot a graph dipcting the relationship) Costs ($) Base Hoodie Cost $30 Craft Supplies to design $10 Selling Website Service Charge 5%looking to see if my answer is correct for this homework problem and if not why. the AVC is throwing me offAssume you were hired as a Production Engineer in a global Bearing Manufacturer company and given the following inputs: Equipment Maintenance Cost per Month Utilities Cost per Month Material Cost per Unit Labor Cost per Unit Selling Price per Unit S60,000.00 $12,000.00 $12.00 $3.00 $24.00 Calculate Total Fixed Cost per Month = Calculate Total Variable Cost per Unit = Calculate number of Units to be sold to reach Break-Even Point = Calculate number of Units that must be sold to eam profit of $90,000.00 =
- Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)Owen conner works part time packaging software for a local distribution company in indiana. The annual fixed cost is $15,000 for this process, direct labor is $4.00 per package, and material is $5.00 per package. The selling price will be $15.00 per package. How much revenue do we need to take in before breaking even? What is the break even point in units?Why is it important for managers to avoid confusing incremental costs with average costs?