A company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of $140,000 per year and variable cost of $675 per valve. The company expects to sell 17,000 valves per year. Determine the selling price in order for the company to make a profit of $325,000 per year. The selling price in order for the company to make a profit of $325,000 is determined to be $

A company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of $140,000 per year and variable cost of $675 per valve. The company expects to sell 17,000 valves per year. Determine the selling price in order for the company to make a profit of $325,000 per year. The selling price in order for the company to make a profit of $325,000 is determined to be $

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Similar questions

. A call center in India used by U.S. andU.K. credit card holders has a capacity of1,400,000 calls annually. The fixed cost ofthe center is $775,000 with an averagevariable cost of $2 and revenue of $3.50 percall.(a) Find the percentage of the capacitythat must be placed each year tobreak even.
Awesome in cursive fix cost of dollar 4000 and variable cost of dollar 10000 and its total sales receipts are $15000. Determine actual profit.
What are the fixed cost and variable cost form th ebelow list? 3000 Bottles price 25782.62 years Website hosting 1201.28Stickers printing price 5723.45Shipment of stickers 2280Delivery Order charges 3793.32Customs duty 744Clearance 360Shipping documentation 413MPL charges 554.38Rent of warehouse 6500Wages 3000Raw Materials 4000Unit Selling price
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?
ipants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? Please select any/all correct responses below: Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags. Using the profit-maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 200 bags. Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize…
The cost, in dollars, of producing x yards of a certain fabric is C(x) = 900 + 12x - 0.1x² +0.0005x³ and the company finds that if it sells x yards, it can charge p(x) = 27-0.00021x dollars per yard for the fabric. (a) Graph the cost and revenue functions. y 8000 6000 4000 2000 y 15 000 10 000 5000 R C 100 R =² C 100 200 200 300 300 X 400 400 X Use the graph to estimate the production level for maximum profit. 283.092 x yards y 15 000 10 000 5000 y 15 000 10 000 5000 R 100 R C 100 200 200 (b) Use calculus to find the production level for maximum profit. (Round your answer to two decimal places.) 186.63 yards 300 300 400 400 X
• Total revenue $ 500,000• Wages and salaries $ 40,0000• Forgone salary $ 80,000• Interest paid $ 10,000• Forgone rent $ 10,000• Raw materials $ 50,000• Other payments $ 20,000• Forgone interest $ 7,000 ABC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the average fixed cost, average variable cost, average total cost and total cost at the current output level.
T/F The fixed cost remains same at all level of output.
A company makes and sells toasters. To make the toasters there is a fixed monthly cost of $27,000 and an additional production cost of $30 per toaster. The toasters sell for $75 each. (a) Write down the cost function. (b) Write down the revenue function. (c) Find the profit function. (d) Find the break even point. (e) How many toasters must the company sell to make a 15% profit?
For a table manufacturing company, selling price for a table is $188.00 per Unit, Variable cost is $28.00 per Unit, rent is $4, 670.00 per month and insurance is $ 271.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $350.00 per Unit, Variable cost to $48.00 per Unit, bigger area will have rent $6, 537.00 per month and insurance is $406.00 per month At what point will the company be indifferent between the current mode of operation and the new option?
Q VC AVC TC ATC MC $30 1 $40 $50 3 $80 4 $90 What are the fixed costs? If the firm can sell its product for $80, it will sell (circle one) of $ units for a profit/loss/breakeven
A jeweler is considering producing a limited edition diamond bracelet, and she is trying to decide how many bracelets to produce. The table gives her estimated total cost for various production levels as well as the price she would charge for each bracelet. Number of bracelets 100 200 300 400 500 600 Total cost (thousands) Price per bracelet $215 $7900 $420 $7400 $625 $5900 $820 $5000 $1015 $4200 $1205 $3600 (a) of the production levels listed in the table, which gives the highest profit? (b) Estimate the marginal cost and marginal revenue when 400 bracelets are made. marginal cost $ marginal revenue $