What is the breakeven quantity and total profit

Assignment Help Business Economics

Reference no: EM131000082

Using the following data, answer the questions below:

Price per unit (P) = $2

Quantity produced (Q) = 12,000

Variable cost per unit (VC) = $0.50

Fixed cost (FC) = $14,000

What is the total profit?

What is the average cost per unit?

What is the breakeven quantity (round up to the nearest whole unit)?

If variable cost increases to $0.70, by how much will profit decrease (compared to your answer in part A)?

If the variable cost increases to $0.70, what is the unit contribution margin?

Reference no: EM131000082

Questions Cloud

Recognized gain or loss on the distribution : (Assume that X Co. acquired the property distributed to D in a Sec. 351 transfer 6 months before adopting the plan of liquidation when the FMV of the property was $800 and X Co.'s basis was $2,800).

What term do economists use to describe this second outcome : If the CPI was 110 last year and is 116 this year, what is this year’s rate of inflation? What term do economists use to describe this second outcome? Inflation/deflation

Benefits to the environment of recycling : AMS recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS’s leadership in this area. What level of Q maximizes net benefits..

How much profit is earned : The demand function for a good is given as Q = 10 – 2P, where Q = quantity demanded and P = the market price per unit of the good. The cost function is given as C = 8 + 0.5Q where C = total cost. If P = $3, how much profit is earned?

What is the breakeven quantity and total profit : What is the total profit? What is the average cost per unit? What is the breakeven quantity (round up to the nearest whole unit)? If variable cost increases to $0.70, by how much will profit decrease (compared to your answer in part A)?

Purchase the new color copier : You are the manager of a 24-hour copy shop that is closed on Sundays. You lease a building for $2,000 per month and hire three employees who each work eight-hour shifts at a wage of $10.00 per hour (each works a total of 40 hours per week). Are there..

What will be quartz spheres change in volume : A quartz sphere is 14.0 cm in diameter. What will be its change in volume if its temperature is increased by 320 °F? (the coefficient of volume expansion of quartz is 1.50 x 10-6 °C-1).

Review the properties of ac and dc circuits : The voltage across which circuit element (resistor, capacitor. or inductor) increases as the frequency is increased? In your notebook sketch the expected curve of L vs. f for this element.

Computing service-hours depreciation : The company acquired a machine on January 1 at an original cost of $60,000. The machine's estimated residual value is $10,000, and its estimated life is 10,000 service hours. The actual usage of the machine was as follows: Year 1, 2,000 hours; Yea..

User Account

All Pages