Fixed costs for setting up production-breakeven volume

Assignment Help Operation Management

Reference no: EM13785921

A company is considering producing an item that can be sold for $380 per unit. The fixed costs for setting up production are $225,000 and the variable cost per unit for the item using current materials is estimated to be $350. If the company is able to reduce its variable cost by $20 per unit then its breakeven volume would

increase from 4,500 units to 7,500 units

decrease from 7,500 units to 4,500 units

decrease from 4,500 units to 593 units

increase from 593 units to 4,500 units

remain the same

Reference no: EM13785921

Questions Cloud

Write summary of corporate strategy and diversification : Write a summary of the case study Corporate Strategy and Diversification.

Company cash budget for november in good form : Required: Prepare the company's cash budget for November in good form

Differences between the adult and juvenile justice systems : How do these cases affect how the law is applied to juveniles? Are there other differences between the adult and juvenile justice systems that would indicate juveniles have modified or more restricted rights when dealing with the juvenile justice ..

Cut your price to fill the theater : You own a theater with 200 seats. The demand for seats is Q = 300 -100P. You are charging $1.25 per ticket and selling 175 seats. Your costs are fixed and do not depend on the number of people attending. Should you cut your price to fill the theater?

Fixed costs for setting up production-breakeven volume : A company is considering producing an item that can be sold for $380 per unit. The fixed costs for setting up production are $225,000 and the variable cost per unit for the item using current materials is estimated to be $350. If the company is able ..

Patient protection and affordable care act : Do you feel that more people will benefit or that more will suffer as a result of this policy

Assignment on how to recognizing employee contributions : Normal 0 false false false EN-US X-NONE X-NONE Recognizing Employee Contrib..

Assist in setting admission prices : The local space museum has hired you to assist in setting admission prices. As the manager, you recognize that there are two distinct demand curves for admission. One applies to people ages 15 to 64 whereas the other is for children and senior citize..

User Account

All Pages