What will its new price have to be

Assignment Help Business Economics

Reference no: EM13151454

he Automotive Supply Company produces speedometers. Its annual fixed costs are $30,000, and its variable costs are $10 per unit. It can sell a speedometer for $25.

a. How many speedometers must the company sell to break even?

b. What is the break-even revenue?

c. The company sold 3,000 units last year. What was its profit?

d. Next year’s fixed costs are expected to rise to $37,500. What will be the break-even level of output?

e. If the company will sell the number of units obtained in part d, and wants to maintain the same level of profit as last year, what will its new price have to be?

Reference no: EM13151454

Questions Cloud

What will be the average cost of producing the watch : Suppose that the learning effect coefficient in the production of wrist watches is -0.2. If the average cost of producing the first watch is $100, what will be the average cost of producing the 40 th watch?

Water and toluene are very good recrystallization solvents : Water and toluene are very good recrystallization solvents. Why is it not useful to use these solvents for a ‘quick' recrystallization?

Straight-line method of depreciation for the equipment : At the beginning of 2011, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2011 would be:

Effective interest method of accounting for bonds : Which of the following statements regarding the effective interest method of accounting for bonds characteristics is false?

What will its new price have to be : If the company will sell the number of units obtained in part d, and wants to maintain the same level of profit as last year, what will its new price have to be?

What is the ph : a 25 mL sample of .150 M hypochlorous acid is titrated with a .15 M NaOH solution. What is the pH after 26 mL of base is added? The Ka of hypochlorous acid is 3.0x10^8

Find how often families visit in a season : How long they stay on each visit. How would you suggest taking this sample? What type of sampling have you described?

Why did the color inside the dialysis tube change : We did an osmosis experiment where we put a dialysis bag containing a solution of starch + sugar in a beaker containing water + iodine.

Aerosol cans carry clear warnings against incineration : Aerosol cans carry clear warnings against incineration because of the high pressures that can develop upon heating. Suppose a can contains a residual amount of gas at a pressure of 755mm Hg and a temperature of 25 C

User Account

All Pages