How many units must the company produce to break even

Reference no: EM131855197

Question: A company runs eight hours per day and is considering bidding on a new product that will have a selling price of $1, 300 per part. the company has 175 fulltime employees. the average labor rate is $10.25 per hour. Accounting records for a similar company product indicated that the cost for the 21st unit was $190,000 and the cost for the 25^th unit was $172,000. the company estimates that it will take 2500 hours to produce the first unit of the new product. the optimum learning performance is estimated to take 160 working days. A UD intern has estimated the material cost at $450 per part. the machines to produce the part have a total average rental cost of $668,000 annually. Maintenance cost is approximately $675, 500 annually plus $150 per unit. Insurance and taxes are $98,000 annually.

How many units must the company produce to break even?

Reference no: EM131855197

Questions Cloud

Compare and contrast community health : Compare and contrast community health/public health nursing practice with hospital base nursing practice in terms of core functions and essentials services.

What made bayer want to roll aspirin out on a global scale : What made Bayer want to roll Aspirin out on a global scale or how did it get rolled out on a global scale?

Implement a brute-force pattern-matching algorithm : Implement a brute-force pattern-matching algorithm that scans the pattern from right to left.

Statistical methods such as analysis of variance : As such, analysis of the data is very important. What are some advantages and disadvantages to using statistical methods such as Analysis of variance (ANOVA)?

How many units must the company produce to break even : A company runs eight hours per day and is considering bidding on a new product that will have a selling price of $1, 300 per part. the company has 175 fulltime.

Describe how organizational development could be a useful : Describe how organizational development could be a useful tool for that organization to consider as it embarks on its intention to change its organization.

Discussing the influence that extraneous variables : Discussing the influence that extraneous variables have in research studies. As such, what are the defining features of internal and external validity?

Management of patients with hematologic neoplasms : John King, 60 years of age, is a male patient who is admitted with the diagnosis of multiple myeloma. He present with a spinal fracture of the fifth lumber

Outline a method for deleting an item : Outline a method for deleting an item from an extendible hashing table. Implement search' and insert for internal searching using the extendible hashing method.

User Account

All Pages