Reference no: EM132961365

Question - A company that makes desk lamps is evaluating its production process and concluded that the total cost of raw materials needed for each unit produced is $6,000.

Currently, there are 2 operators in charge of this production and each one is paid $400,000 monthly for fees. In addition, there are fixed basic expenses of $ 100,000 per trimester.

With the data provided, it is requested:

a) If the company estimates it will produce 12,000 units per year, what value should the lamp have with in order not to generate profits or losses. (Check your result).

b) If the sale price were $ 9,000 per unit and the number of lamps to be sold in the year will reach 12,000 units to have no profit or loss?

c) If the price were $ 11,000 A production and sale forecast of 8,000 units is estimated, but if the price were $ 8,000, the incoming sales of 14,000 units, but the costs operating fees would increase 20% for overtime. Which is the best alternative?