Consider the case of a manufacturing company which produces and sells brand pens. The selling price is $20 per pen, the total fixed operating cost is $2 million, and the variable cost per unit is $10, the total fixed financing cost is $500,000. How many pens should the company sells so it would neither make a profit or loss? O a. 4,000,000 O b. 25,000 O c. 2,500,000 O d. 200,000 Oe. 20,000,000
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- Time left 0:57:42 An industry is selling a product for Rs. 10 per unit. The fixed cost for assets is Rs. 40000 with variable cost of Rs. 6 per unit. How many units should be produced to break even? put of O a. OMR12000 O b. None of the options question O c. OMR14000 O d. OMŘ10000 Previous page Next page 74% Esc ロー F8 F10 @ %23 24 2 3 6 7 Q W R T Y S. D G Y H. K 521 CV BYN1 M IS Alt く - 1: 47The margin of safety in the Flaherty Company is $28,400. If the company's sales are $129,000 and its variable expenses are $80,000, what must its fixed expenses be? Question 19Answer a. $129,000 b. $28,400 c. $264,845 d. $38,208QUESTION 2 Peacemaker Ltd, a newly formed manufacturing company is considering introducing a new product with the following possible outcomes: Worst Expected Best Selling price per unit ($) 21 26 35 Sales volume (units) 3 500 5 500 7 500 Variable cost per unit ($) 15 13 11 Fixed operating cost per year ($) 35 000 32 000 30 000 Economic life (in years) 3 4 5 Residual Value 0 0 0 The cost of plant and equipment required is expected to be N$100 000. Assume that taxation is not applicable and the company’s cost of capital is 11%. The fixed operating costs do not include depreciation and relate only to cash fixed overhead costs. Required: a) Calculate the net present value (NPV) for each of the three scenarios? b)…
- Question 7 A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € 8 purchasing price machine residual value useful life (years) The cost of capital are 10%. How would you decide using the • profit comparison calculation and the profitability comparison? When will the machines be amortized? Question 8 Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € € 8 Please refer to question no. 7. What would be the results Eco had a residual value of € 500.000,-- and Top of € 600.000,--?Time left 0:06:05 An industry is selling a product for Rs. 10 per unit. The fixed cost for assets is Rs. 40000 with variable cost of Rs. 6 per unit. How many units should be produced to break even? estion 6 swer saved 10 arked out of L00 O a. OMR12000 Finish RFlag question O b. None of the options O c. OMR14000 O d. OMR10000 Next nage I https://moodle1.du.edu.om/mod/quiz Previous page 59% Eac %23 & 6 Q R T A D G Y H K C { V YNIM Alt Alt ideapad C340 Extended Battery の く + 00 つ LI 41 のX The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000+ 7000 6000 5000 4000 Dollars ($) 3000- 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (295,7650) (b) What are the fixed costs? $ Percent of capacity= 40 Units Next Question 50 TR If the selling price per unit is $90, and the variable cost per unit is $20: TC FC 60 70 80 90 100 (c) If the maximum production capacity of the commodity is 110, express the break- even units as a percent of capacity? enter the answer in the form (x,y) e.g. % (round to two decimal places if necessary)
- NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 The graph above shows the break - even analysis for the cost of making a certain good. Based on this chart, which of the following is False? The project should not be undertaken if the predicted cost of goods sold is more than $110 O If the good costs are $100 to make, the net present value (NPV) of the project will be approximately $5,000 The net present value (NPV) of the project decreases with increased cost of goods sold The net present value (NPV) of the project will be positive if the cost of goods sold is more than $110QUESTION 12 M and M, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What is the amount of sales that will be necessary to earn the desired profit? $75,000 $125,000 $83,333 $50,0001 2 The following information describes a product expected to be produced and sold by Hadley Company: Selling price Variable costs $80 per unit $32 per unit $630,000 Total fixed costs Required: a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollar sales. c. What dollar amount of sales would be necessary to achieve a pretax income of $120,000? Edit Format Table 12pt v Paragraph | BIU V Αν BVT² V || : F2 F3 F4 -0- 2 W 9. # 3 E SA 4 F5 R F6 % 5 Ø T F7 < 다 6 F8 Y & 7 F9
- # 47 A computer costs RM1,000 and the annual holding cost is 25%. The annual demand is 10,000 units, and the order cost is RM150 per order. What is the approximate economic order quantity? Answer A. 16 о в. 70 ос. 110 D. 183QUESTION 8 Toy Story, Inc., has the capacity to produce 100,000 toys per year but only produces 80,000 toys per year. The sale price is $10, the variable cost is $7 and allocated overhead equals $80,000 per year. Company B offers to buy an additional 18,000 toys but is only willing to pay $5 per toy. What is the additional operating income (loss) of accepting the offer? ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -10,000Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost $34 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required 1 Required 2 Per Unit Required 3 Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 13,000 carburetors from the outside supplier? 2.…