Fanning Corp. incurs the following annual fixed costs: Depreciation $80,000 Officers' salaries $190,000 Long-term lease $42,000 Property taxes $48,000 Determine the total fixed cost per unit of production, assuming that Fanning F
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- SINGLE-PRODUCT BREAK-EVEN ANALYSIS Stephens, Inc., wants to determine the minimum dollar volume and unit volume needed at its new facilityto break even.APPROACH c The firm first determines that it has fixed costs of $10,000 this period. Direct labor is$1.50 per unit, and material is $.75 per unit. The selling price is $4.00 per unit.A shoe company manufactures and sells a pair of shoes with the following cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: AED 388,348 Expenses types Advertising Rent 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,000?A shoe company manufactures and sells a pair of shoes with the following cost and revenue data: Selling price Per Unit (AED) 75 Variable cost Per Unit (AED) 20 Total fixed expenses per month are as follows: Expenses types Advertising Rent AED 388,348 90,000 Heating 80,000 a. How many units would the company have to sell to have a profit of AED 150,0007
- 26) Which of the following is a fixed cost for a chocolate factory over the course of a month? A) Depreciation of machines due simply to their age B) Overtime pay C) The cost of cocoa D) The cost of electricity (paid quarterly) for running the mixing machinesTyre presently rents and uses 7000 square meters of warehouse space for $2700 a month. It has the option of reducing the rented space to 2000 square meters, in which case the monthly rent would be $1000 a month. Furthermore, Tyre could cease renting warehouse space entirely. Tom Clay, the Tyre Corp. plant engineer, is considering three alternatives: 1. Buy the new warehouse and lease half the space to the Johnson Company. In turn, the Tyre-rented space would be reduced to 2000 square meters. 2. Buy the new warehouse and cease renting any warehouse space. 3. Continue as is, with 7000 square meters of rented warehouse space.Complete the following table by calculating the contribution to profit and overhead for each of the 10 time periods and prices. Time Period Price Quantity Sold Total Contribution ($) (Million) ($ Million) 1 2,400 0.2 2 2,200 0.2 3 2,000 0.2 4 1,800 0.2 5 1,700 0.2 6 1,600 0.2 7 1,500 0.2 8 1,400 0.2 9 1,300 0.2 10 1,200 0.2 Over the 10 periods, the total contribution to profits and fixed costs from price skimming is million.
- Problem#3 The Bach Company produces office chairs. The price of the chairs is $99.75 and the variable cost per chair is $49.75 the following fixed cost is incurred: Depreciation of plant and equipment per year Property Tax per year Variable Overhead $20,000 $12,000 $5,200 Perform breakeven analysis of this company: a) What is the total revenue function? b) What is the total cost function? What is the profit function? c) d) What is the breakeven point in units in number of chairs? e) What is the revenue ate the breakeven point? f) Estimate the profit when 1500 chairs are produced in a year? g) How many chairs must be sold for the company to make $750000 in a year?The Rocky Mountain Publishing Company isconsidering introducing a new morning newspaper inDenver. Its direct competitor charges $0.25 at retailwith $0.05 going to the retailer. For the level of newscoverage the company desires, it determines the fixedcost of editors, reporters, rent, pressroom expenses,and wire-service charges to be $300,000 per month.The variable cost of ink and paper is $0.10 per copy,but advertising revenues of $0.05 per paper will begenerated. To print the morning paper, the publisherhas to purchase a new printing press, which will cost$600,000. The press machine will be depreciatedaccording to a seven-year MACRS class. The pressmachine will be used for 10 years, at which time itssalvage value would be about $100,000. Assume 300issues per year, a 40% tax rate, and a 13% MARR.How many copies per day must be sold to break evenat a retail selling price of $0.25 per paper?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. Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue Wages and salaries Forgone salary Interest paid Forgone rent Raw materials Other payments Forgone interest
- discuss IKEA Variable product cost per item and Fixed product overhead costs per itemThe Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost perbarrel is $16. Price is related to demand according to the following linear equation.v -75,000 1,153.8pDevelop the nonlinear profit function for the brewery and determine the price that will max-imize profit, the optimal volume, and the maximum profit per year.XY Inc. produces certain product at a labor cost of $10 and material cost of $15 per unit. The fixed charges of the firm is $10,000 per month, and the variable costs besides the material and labor costs are $8 per unit. The products are sold wholesale at $63 each. Using this information. the break even sales volume of the firm is Blank 1 units Blank 1 Add your answer