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ANSWER THE FOLLOWING MCQ'S
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- Activity Rob Otics Ltd, a small business that specializes in manufacturing electronic- control equipment produces units as follows: No. of Units 100 Units 200 Units 300 Units You are required to calculate: (a) Find the variable cost per unit. (b) Find the Total Fixed cost. (c) Estimate the total cost if output is 250 units. (d) Estimate the total cost if output is 500 units. Total Costs (In Omani Rial) 5000 6000 7000(D)Detailed calculation stepsPlease solve parts (c) and (d)
- The yariablecosts incured by the business in the curent period per unit of output is: (aDThe average variable costs (b) The marginal costs (c) The marginal input cost (d) The marginal variable input'costProcess A has fixed costs of $10,000 and unit costs of $4.50 each, and Process B has fixed costs of $25,000 and unit costs of $1.50 each. At what level of annual production would the two processes have the same cost? (a) 50 units (b) 500 units (c) 5000 units (d) 50,000 units?The cost of materials was $1000 per lot when the cost index is 145. Today the cost index is 210. What is the cost per lot? (a) $690 (b) $1000 (c) $1448 (d) Cannot be determined with the data given.
- BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.Subject : Economy and Engineering ManagementUsing the following unit data for a company that produces Product A and B, what is the breakeven point (round to nearest unit) when fixed costs total $175000? Product A Product B Units sold last year 2250 1000 Sales price $200 $450 Cost of goods sold 145 350 Sales commission 15 37 Variable costs 160 387 Contribution margin $ 40 $ 63 963 Product A; 572 Product B 2574 Product A; 1144 Product B 1287 Product A; 572 Product B 715 Product A; 715 Product B