Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 9, Problem 2.3CE
To determine

To evaluate the indirect fixed costs of the C service.

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The company Cojines Cromáticos, S.A. uses a standard cost system. The standard information for a finished cushion is 3.5 labor hours with a standard rate of $ 5.5 per hour. The total wages paid in the month was $ 225,000 corresponding to a total of 45,000 hours worked. In the month of November, 12,000 cushions were produced. What is the variation in the labor rate for the month of November?
Please answer with details on how to do it. A small company manufactures a certain product. Variable costs are $20 per unit and fixed  costs are $10,875. The price demand relationship for this product is   P = -0.25D + 250, where P is the unit sales price of the product and D is the annual demand.  Total cost = fixed cost + Variable cost, TC = CF + CV  Revenue = Demand x Price, TR = D x P Profit = Total Revenue – Total Cost, P = TR – TC   a) Develop the equations for the total cost and total revenue. Find the breakeven quantity c) How many units must be sold to maximize profit?  What is the company’s maximum profit?
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