A. For each of the following, perform a break-even analysis showing a. an algebraic statement of i. the revenue function ii. the cost function; b. computation of the break-even point i. in units, ii. in sales dollars, iii. as a percent of capacity; c. a detailed break-even chart. 1. Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable selling expense is expected to be $15 per unit. The fixed costs applicable to the new product are estimated to be $2800 per period and capacity is 100 units per period.

The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows:           Indirect Materials Cost Explained by Units Produced         Constant                                                                         $15,685         Standard error of Y estimate                                           $3,500         r2                                                                                      0.7832         Number of observations                                                  20         X coefficient(s)                                                                 10.25         Standard error of coefficient(s)                                        2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X

Management believes it can sell a new product for $6.50. The fixed costs of production are estimated to be $5,500, and the variable costs are $2.50 a unit.   Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.   Quantity Total Revenue Variable Costs Fixed Costs Total Costs Profits (Losses) 0   $   $   $   $   $   500   $   $   $   $   $   1,000   $   $   $   $   $   1,500   $   $   $   $   $   2,000   $   $   $   $   $   2,500   $   $   $   $   $   3,000   $   $   $   $   $     Determine the break-even level using the above table and use the Exhibit 19.5 to confirm the break-even level of output. Round your answers for the break-even level to the nearest whole number. Round your answers for the fixed costs, variable costs, total costs,…

Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $15 Direct labor 10 Factory overhead $451,600 Selling expenses: Sales salaries and commissions 93,800 Advertising 31,800 Travel 7,100 Miscellaneous selling expense 7,800 Administrative expenses: Office and officers' salaries 91,700 Supplies 11,300 Miscellaneous administrative expense 10,500 Total $705,600 $42 It is expected that 10,800 units will be sold at a price of $140 a unit. Maximum sales within…

Given that the total cost, C, is related to sales volume, x, by the equation y=1000+0.2x, say true or false for the following and proof it. (a) The cost-sales line rises $2 for each increase of $10 in sales volume. (b) The slope of the line is interpreted as variable cost

Encircle the followings: Which of the following is a definition of break-even point?a) The difference between the selling price of a product and the variable costs incurred in producing that productb) The fixed plus variable costs of the businessc) The situation where neither a profit nor a loss is maded) The situation where a profit is made If the contribution per unit is $25 and the breakeven point is 80,000 units. Which of the following statements could NOT be true? (Show Calculation) a) The selling price per unit is $55 and the variable cost per unit is $30b) The fixed costs are $2,000,000c) To make a profit of $300,000, 92,000 units would have to be soldd) To make a profit of $500,000, 95,000 units would have to be sold Which of the following is not an underlying assumption of break-even analysis?a) Costs can easily be divided into fixed and variable.b) Fixed costs remain static over a relevant range.c) The unit selling price will remain constant throughout the relevant…

Suppose a ceiling fan manufacturer has the total cost function  C(x) = 35x + 1200  and the total revenue function  R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) =    (b) What is the profit on 20 units? P(20) =  Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue.    The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans

What are the answers for the following?   Construct a cost-volume-profit chart on your own paper. What is the break-even sales?   What is the expected margin of safety in dollars and as a percentage of sales?   Determine the operating leverage. Round to one decimal place.

1) Determine the variable cost per unit and the fixed cost using the high-low method. 2) What is the equation of the total mixed cost function? 3) Based on the High-Low method, what is the total production costs if 6,500 units are produced?4) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.5) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)   Answer all please and thanks.

Reid Company is considering the production of a new product. The expected variable cost is $27 per unit. Annual fixed co expected to be $810,000. The anticipated sales price is $72 each. Required Determine the break-even point in units and dollars using each of the following: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. (Do not round intermediate calculations. Round "Contribution margin rat decimal place. (i.e., 0.234 should be entered as 23.4)) a. Break-even point in units Break-even point in dollars b. Contribution margin per unit Break-even point in units Break-even point in dollars Contribution margin ratio Break-even point in units Break-even point in dollars C. $ 18,000 1,296,000 %