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
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 2.2CE
To determine
To find the conversion factor that allows cost recovery of this larger-scale turbine.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's
monthly fixed expense is $23,700.
Required:
1. Calculate the unit sales needed to attain a target profit of $6,000. (Do not round intermediate calculations.)
2. Calculate the dollar sales needed to attain a target profit of $9,300. (Round your intermediate calculations to the nearest whole
number.)
1.
Units sales to attain target profit
550| units
2. Dollar sales to attain target profit
The Rosebud Motel is a must-stay for any road-tripper or weary traveler. The motel fils each of its 24 rooms for 200 nights each during the year. Annual fixed costs total $160,000. The variable cost
of one night's stay is $100. The motel owners expect a 50% return on the company's $500,000 of assets each year.
The Rosebud Motel is currently the only place to stay for 50 miles.
What should Rosebud's cost-plus price be if sales volume and costs are expected to stay consistent?
OA. $133.33
OB. $185.42
OC. $2,150.00
OD. $152.08
OE. The Rosebud Motel would not set its price as it is a price-taker in this market.
Bose will incur fixed costs of $200,000 and unit variable costs of $25 on its new wireless Bluetooth shower speaker. Bose plans to price the speaker at $750. To break-even, Bose must sell _____ units.
Chapter 1 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 1 - One of the approaches for the Southern Company to...Ch. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - In the Southern Company Managerial Challenge,...Ch. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 1.1CECh. 1 - Prob. 1.2CE
Ch. 1 - Prob. 1.3CECh. 1 - Prob. 1.4CECh. 1 - Prob. 1.5CECh. 1 - Prob. 1.6CECh. 1 - Prob. 1.7CECh. 1 - Prob. 1.8CECh. 1 - Prob. 1.9CECh. 1 - As a value-maximizing aluminum company, should...Ch. 1 - Prob. 2.2CECh. 1 - Prob. 2.3CECh. 1 - Prob. 2.4CECh. 1 - Energy entrepreneur T. Boone Pickens has proposed...
Knowledge Booster
Similar questions
- A company plans to design and build transport vehicles for the Army. The cost for the design is $10M. The cost for the test prototype is $2M. The cost to produce and test each production vehicle is $0.5M. What is the non-recurring cost? What is the recurring cost per vehicle? What price per vehicle must the company sell the vehicles to the government to make $50K profit per vehicle if the company sold 50 vehicles? 100 vehicles? Why does the price per vehicle go down when production goes up?arrow_forwardMichael’s Lobster Food Truck has been operating for three years, but he’s yet to make a profit in the competitive food truck industry. Last year, he sold 2,500 items at an average price of $12. It costs him $9 to cover his ingredients for each item, and he also has fixed costs of $8,000 per year to cover for his truck, marketing, insurance, etc. What percentage increase in the number of units sold is required for Michael to break even?arrow_forwardLight emitting diode (LEDs) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.53 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $3.80 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.129. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a return of 9 percent and use a light fixture 500 hours per year. What is the break-even cost per kilowatt-hour? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Break-even costarrow_forward
- Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is $100 $80 $1005 $800arrow_forwardA publisher for a promising new novel figures fixed costs (overhead, advances, promotion, copy editing, typesetting, and so on) at $55,000, and variable costs (printing, paper, binding, shipping) at $2.30 for each book produced. With this pricing, 5671 books need to be produced and sold at $12.00 each for the publisher to break even. However, rising prices for paper require an increase in variable costs to $2.80 for each book produced. Use this information to complete parts a. through c. a. What strategies might the company use to deal with this increase in costs? Choose all that are reasonable. A. Decrease the fixed costs. B. Find different suppliers to try and lower the variable costs. C. Increase the font size of the print in the book. D. Increase the selling price of the book. b. If the company continues to sell books at $12, how many books must they now sell to make a profit? The publisher must produce and sell at…arrow_forwardWhat is the markup price for the Acme1 battery? HINT: Calculate markup price as Unit Cost/ (1-Markup%) $30 $35.20 $42.50 $34arrow_forward
- The Virginia PUC is considering a subsidy program to encourage consumers to install improved insulation in walls and ceilings of homes as a way of reducing the need for building a new CCGT plant. The insulation program would cost $1,500,000 and would save 10MWH of power. What is the negawatt cost in MWh of this power savings? Enter your answer herearrow_forward1. A service station uses 2500 oil filters during the course of a year, and this usage is constant throughout the year. These oil filters are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per oil filter per year is $1.50 (or 10% of the unit cost) and the ordering cost is $18.75. There are 250 working days per year. a) What is the service station's optimal order quantity and total annual cost of inventory?arrow_forwardJenny Tanaka wants to buy a new car, and the annual gasoline expense is a major consideration. Her present car gets 25 miles per gallon (mpg), and she is considering purchasing a new car that gets 40 mpg. Jenny now drives about 12,000 miles per year and pays $3.25 per gallon of gasoline. She therefore calculates an annual gasoline consumption of 480 gallons for her 25 mpg car (12,000 miles/25 mpg) compared to 300 gallons consumed per year for the 40 mpg car (12,000 miles/40 mpg). Since driving the higher- mileage car would use 180 gallons less per year, Jenny estimates the new car will save her $585 in gasoline expense per year (180 gallons 3 $3.25 per gallon). Suppose Jenny buys the 40 mpg car. According to economic theory, Jenny's actual annual savings on gasoline will be 7 1 C 1 U C VI 10 V K W S TACAZEC 10 GUNS TOMBER 2 than her initial estimate of $585.arrow_forward
- Lightview produces and sells overhead projectors to schools and colleges. Each overhead projector uses $30 of materials and requires 3 hours of labor at $10 per hour. Each overhead projector sells for $84.87. Lightview has fixed overheads of $264605. What is Lightview's break-even point in sales units?arrow_forwardA company is developing a new electronic product. It expects to spend $38 million on Research and Development and then another $6 million on Manufacturing Engineering. After completing all this, the company expects a cost of $15 per unit to manufacture and plans to build in a profit of $5 per unit into the price. The company needs to recover the cost of R&D plus Manufacturing Engineering over five years through sales of 4 million units over those five years. What will the company need to establish as the sales price for the unit?arrow_forwardShunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into a calculator to sell in the market. In recent years, the price of the calculator has remained steady at 60 yuan/units, the basic data of the input and output of shunda in 2013are listed in the table below: Hourly wage is 6 yuan per hour, price of parts is 25 yuan per set, power consumption is paid by 0.6 yuan per watt, the extract depreciation of equipment is 3 yuan per hour, and Shunda spends fixed costs 10000 yuan per month to pay all of the regular fee According to the above data, is it possible to estimate the production function and cost function (TC, TVC, AC and AVC)?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning