01/A manufacturing concern produces a product which is sold at a price of $10.5 per unit. The plant's fixed cost is $50000 and its variable cost is $6.5 per unit. How many units should be produced at the breakeven point? How many units must be produced in order to earn a profit of $10000? What should the profit on a sales volume of 20000 units be?

01/A manufacturing concern produces a product which is sold at a price of $10.5 per unit. The plant's fixed cost is $50000 and its variable cost is $6.5 per unit. How many units should be produced at the breakeven point? How many units must be produced in order to earn a profit of $10000? What should the profit on a sales volume of 20000 units be?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter18: Life-cycle Costing

Section: Chapter Questions

Problem 5RQ

See similar textbooks

Similar questions

1. A manufacturer has a contract to produce 5,000 units of a certain device. The device can be made by highly-trained workmen working individually. The device can also be made by less-skilled workmen working together if they are given a specialized equipment and proper supervision. The highly-trained workmen are paid P20.00 per hour, and each can produce one unit every 2 hours, on the average. The specialized equipment can be placed in operation at an original cost of P60,000 and it will be worthless at the time all the 5,000 units are manufactured. With this equipment four men, paid P15.00 each per hour, and a foreman, paid P25.00 per hour, can do the work. All the five men working together can finish one unit in 15 minutes. Determine the gain or loss if the specialized equipment is used.
A light manufacturing firm has set up a project for develop- ing a new machine for one of its production lines. The most likely estimated cost of the project itself is $1,000,000, but the most optimistic estimate is $900,000 while the pessimists predict a project cost of $1,200,000. The real problem is that even if the project costs are within those limits, if the project itself plus its implementation costs exceed $1,425,000, the project will not meet the firm’s NPV hurdle. There are four cost categories involved in adding the prospective new machine to the production line: (1) engineering labor cost, (2) nonengineering labor cost, (3) assorted material cost, and (4) production line downtime cost. The engineering labor requirement has been estimated to be 600 hours, plus or minus 15 percent at a cost of $80 per hour. The nonengineering labor requirement is esti- mated to be 1,500 hours, but could be as low as 1,200 hours or as high as 2,200 hours at a cost of $35 per hour. Assorted…
A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to fiancé the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000 and variable costs are P0.348 per unit. What is the breakeven point?
A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to fiancé the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000 and variable costs are PO.348 per unit. What is the current profit or loss?
II. MATERIAL COST 1. A Company produced 1000 tables. To produce 1,000 tables, the company incurred costs of: 950,000 on wood 10,000 on wages for carpenters and 5000 on wages for security guards to overlook the manufacturing facility 1000 for a bag of nails to hold the tables together 5000 for factory rent and utilities What is per unit cost of 1000 tables?
A firm must make a bid on a contract to make 12 units of a new product. Engineering analysis indicates that the nature of this product and its manufacturing processes resemble those for the firm’s current model, so the firm decides to base its bid on the 85 percent learning rate it experienced on that model. If engineers estimate that the first unit will require 10 hours of labor, how many hours will the 12 unit require? How many hours will the firm take to make all 12 units?
In building their plant, the officers of the International Leather Company had the choice between alternatives: One alternative is to build in Metro Manila where the plant would cost P2,000,000. Labor would cost annually P120,000 and annual overhead P40,000. Taxes and insurance would total 5% of the first cost of the plant. The second alternative would be to build in Bulacan a plant costing P2,250,000. Labor would cost annually P100,000 and overhead would be P55,000. Taxes and insurance would total 3% of the first cost. The cost of raw materials would be the same in either plant. If capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose?
Determine the Average Cost if the total cost of the production is $150 and the total numbers of production unit is $100.
The direct labor cost and material cost of a certain product are P300 and P400 per unit, respectively. Fixed charges are P100,000 per month and other variable costs are P100 per unit. If the product is sold at P1,200 per unit, how many units must be produced and sold to breakeven?
This is I'm uploading second time. If you don't know the solution please leave it but don't copy from other experts solution. Give me right solution with clear calculations.
3. An aircraft manufacturer uses 1,000,000 special rivets per year at a uniform rate. The rivets are made on a single-spindle automatic screw machine at the rate of 3,000 per hour. The manufacturing cost is $0.0052 per rivet and the storage cost is estimated to be $0.0008 per rivet per year. The set-up cost is $40 per set-up. Calculate the economic production quantity and the allow- able variation in this quantity for a maximum deviation from the minimum cost of 5%. Assume the machine operates 1,700 hours per year,
I. LABOR COST 1. Brew Good Coffee produces and distributes whole bean coffee. Its facility employs 25 employees working on producing, packaging and delivering bags of coffee. Brew Good's owners want to calculate the hourly direct labor costs of its factory employees for the previous year. First, the owners determine the total expenses for the 25 employees by adding up wages, benefits and other contributions. The amount is 4,500,000, which represents total direct labor costs for the year. Next, the company adds up the number of hours the factory employees worked in the past year. Twenty employees worked 40 hours a week for 50 weeks. The other five employees worked 35 hours a week for 48 weeks of the year. What is the per-hour direct labor costs.