What is the breakeven level of daily output for the firm

Assignment Help Econometrics
Reference no: EM13222821

Go Hard has total fixed costs of $2,160 per day. The firm manufactures Go Hard advice kits. The kits have a short-run average variable cost of $48, and all of them can be sold for $66 each. Assuming constant per unit variable costs in the relevant range, what is the breakeven level of daily output for the firm (= BE) and what is its degree of operating leverage (DOL) when daily output is Q = 170?

Reference no: EM13222821

Questions Cloud

Does the governments should intervene in the market : Antitrust laws were created in order to maintain competition and protect consumers. There have been several high profile Antitrust cases in the last few years (e.g. Microsoft). Think of a recent example. Do you think the right decision was made
Determine the true mass of pentane : Liquid pentane (C5H12) has a density of 0.6262 g/mL at 20°C. Find the true mass (mtrue) of pentane when the mass weighed in air is 12.580 g. Assume the air density is 0.0012 g/mL and the balance weight density is 8.4 g/mL.
Terms of the distribution strategies : What do you think should be done differently in terms of the distribution strategies being used for this Brand?  Why?
What percentage of ceos total earnings is independent : Suppose a firm compensates its CEO according to I = 250,000 + 0.0317 X + 0.01 Y, where I = total compensation of the CEO, X = company profits (in millions), and Y = Sales (in millions). Assume that X = $10 (millions), and Y = $20 (millions).
What is the breakeven level of daily output for the firm : Go Hard has total fixed costs of $2,160 per day. The firm manufactures Go Hard advice kits. The kits have a short-run average variable cost of $48, and all of them can be sold for $66 each. Assuming constant per unit variable costs in the relevant..
What price-quantity combination maximizes revenue : c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination d. What price-quantity combination maximizes revenue e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the reven..
Explain the heat capacity of the drink : When ice melts, it absorbs 0.33 kJ per gram. How much ice is required to cool a 15.0 fluid ounce drink from 71°F to 32°F, if the heat capacity of the drink is 4.18 J/g·°C?
How to find the equation to the isocost line : The firm need a combination of one unit of capital and two units of labor per hour to make ten units of output. The technology is such that an increase in labor has to be accompanied with an increase in capital, and a decrease in labor has to be a..
Find out freezing point of solution : Determine freezing point of solution which contains .31 mol of sucrose in 175g H2O. kf=1.86 degreesC/m

Reviews

Write a Review

Econometrics Questions & Answers

  Market equilibrium price and quantity for beer case

Assume the demand function and the supply functions for 24-can beer case in Houston are: Demand: QD = 1,000 ? 50P Demand: QS = 40P + 100 (a) What are the market equilibrium price and quantity for beer case?

  What capital expenditure can be justified to build the water

The Annual Benefits may be assumed to be one tenth of the decade benefits. The O & M Cost of the project is estimated to $15000 per year. Assume a 50 Year Analysis Period with no net project salvage Value. Purpose 1 decade 2 decade 3 decade 4 deca..

  What is the evidence to support the professors claim

A professor in the economics department of the college of business and economics at CSULA claims that there is much more variability in the final exam scores of students taking the introductory economics courses as a requirement.

  Find the quantity the firm will produce in the short run

Find the quantity this firm will produce in the short run if the price of output is $20. If $20 is the short run competitive equilibrium price, find the number of firms in the market. The short run variable costs below are for a firm in a perfectly..

  Calculate the price of each vegetable in each year

Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2008, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $100, and 500 carrots for $50. In 2009, they buy 75 heads of cau..

  What do you think the price of the bond will be

What will happen to the price of the bond that pays $3 per year (Suppose that interest rates are 6% in the economy and a safe bond promises to pay $3 per year in interest forever. What do you think the price of the bond will be Why

  State the null and alternative hypothesis

ChooChoo Paper Company makes various types of paper products. One of their products is a 30 mils thick paper. In order to ensure that the thickness of the paper meets the 30 mils specification, random cuts of paper are selected and the thickness o..

  What rate of return did mrs whitney receive on investment

In 1990 Mrs. John Hay Whitney sold her painting for $71 million. The buyer also had to pay the auction house commission of 10%, or a total of $78.1 million. The Whitney family had purchased the painting in 1929 for $165,000.

  Profit maximization and shareholder wealth maximization

Explain difference between profit maximization and shareholder wealth maximization and determine which of these is a more comprehensive statement of a firm's economic objectives?

  Calculate the tfr and nrr

In Avataria one-forth of all females born die in infancy, and the rest of them live until age 60. Women bear 1 child at age 18, 1 child at age 24, 1 child at age 26, and 1 child at age 30. One-half of children are boys.

  What are the potential weakness of the model

The forecasting staff for the Prizer Corp has developed a model to predict sales of its air cushioned ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40 Z.

  What nominal annual rate of return would you receive

A well-known industrial firm has issued $1000 bonds that carry a 4% nominal annual interest, rate paid semiannually. The bonds mature 20 years from now, at which time the industrial firm will redeem them for $1000 plus the terminal semiannual inte..

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