ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $124 per unit unitsarrow_forwardAn industrial engineering consulting firm usually observes a 90% learning curve rate in the installation of enterprise level software with its clients. If the first installation required 75 hours, estimate the time required for (a) the fifth, (b) the tenth, and (c) the twentieth installations. (d) Research the AMCF Code of Ethics. How are these similar to and different from engineering society ethics statements from your discipline?arrow_forwardWhimsical Toys A US-based designer and manufacturer of wimsical, high quality, wooden toys is looking to expand manufacturing capacity to service its growing domestic demand. The company currently owns one manufacturing facility in North Carolina and is considering either building onto this facility or sourcing some of its production from Mexico. If it sources from Mexico, the company must further consider whether to own this facility or outsource this fraction of its production to another company. Labor cost as a % of total bill of materials cost at the North Carolina site is currently 30% for a typical wooden toy and the average wage of workers in the plant is $27/hour. The average wage of workers doing similar work in Mexico is $4.50/hour. If the labor costs remain the same as described above, what percent of product cost results in no cost difference between production in US and Mexico? a. 0% b. 18% c. 20% d. 22%arrow_forward
- Break-Even Point Hilton Enterprises selis a product for $119 per unit. The variable cost is $68 per unit, while faed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit a. Break-even point in sales units units b. Break-even point if the selling price were increased to 124 per unit units 00arrow_forwardCal Tech Inc. manufactures video games for "The Play Station IlI". Variable costs are estimated to be $20 per unit and fixed costs are $10,875. The demand-price relationship for this product is Q = 1,000 - (4 x P) where P is the unit sales price of the game and Q is the demand in number of units. (а) (b) (с) (d) Find the breakeven quantity (or quantities). What is the company's maximum possible revenue? What profit would the company obtain by maximizing its total revenue? What is the company's maximum possible profit?arrow_forward10. A local company assembling stereo radio cassette produces 300 units per month at a cost of P800 per unit. Each stereo radio cassette sells for P2,200. If the firm makes a profit of 10% on its, 10,000 shares with a par value of P2000 per share and the total fixed cost are P20,000 per month. How much is the loss or profit if only 100 units are produced in a given month?arrow_forward
- A product that has a list price by the company to be 589 while the variable cost of manufacturing is 340. 1. What is the fixed cost per year that the company can afford to breakeven with sales 9000/year? 2. If the fixed cost of the company is actually 750,000 per year, what is the profit at a sales level of 7000 units?arrow_forwardFind the attached file.arrow_forwardAlfarah Company estimates that variable costs will be 50% of selling price per unit, and fixed costs will total 500,000 The selling price of the product is $5. Instructions 1. Compute the break-even point in (a) units and (b) dollars. 2. Prepare a CVP graph, assuming maximum sales of $3,200,000, (Note: Use$400,000 increments for sales and costs and 100,000 increments for units.) 3. Assuming actual sales are $2million, compute the margin of safety in (a) dollars and (b)as ratio. Note, Variable costs: 50% of the selling price per Fixed costs: $500,000 Selling price per unit: $5 Maximum sales: $3,200,000 Actual sales: $2,000,000 unitarrow_forward
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