What is the break even demand quantity

Assignment Help Business Economics
Reference no: EM133636634

Question 

Mgt is considering an outsourcing decision (make/buy) for a part. The cost figures are as follows: Fixed costs = $300,000; Variable cost = $80/unit; Buy cost = $90/unit landed (including frt and other costs). What's the break even demand quantity? (BEP = qty at which total cost to make = total cost to buy) Hint: TCMake = FC (fixed investment needed) + VC (variable cost/unit in house) * D (demand in units) TCBuy = C (Buy landed cost) * D BEP occurs at the qty at which TCB = TCM So find out the Demand (BEP qty) at which TCB=TCM C * D = FC + VC*D and solve for D (BEP qty).

Reference no: EM133636634

Questions Cloud

Explain the concepts of capital export neutrality : Explain the concepts of Capital Export Neutrality and Capital Import Neutrality in relation to international taxation.
Characteristics of human nature : Evaluate whether the creature meets them and determine the big ideas that are associated with the creature being human or non-human.
Explain how the unemployment rate : Explain how the unemployment rate and the labour force participation rate would change.
Seriously impaired agricultural productivity : Suppose a drought in Australia has seriously impaired agricultural productivity. How would that impairment in productivity
What is the break even demand quantity : Mgt is considering an outsourcing decision (make/buy) for a part. What's the break even demand quantity?
Why is enforcement by police-liquor inspectors of importance : Why is enforcement by Police and Liquor Inspectors of importance?
Explore the critical shortage of organs : Explore the critical shortage of organs, emphasizing its profound impact on patients' well-being.
Particular firm is in competitive market : Which of the following combinations of characteristics would most strongly suggest that a particular firm is in a competitive market
Affect individual economic outcomes : Discuss how poverty can affect an individual's economic outcomes and the economy as a whole.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd