Break-even quantity., Managerial Economics

Assignment Help:
Bikes-for-two, Inc., produces tandem bicycles. Its costs have been analyzed as follows:
VARIABLE COST
Materials $30/unit
Manufacturing labor 3 hours/unit ($8/hour)
Assembly labor 1 hour/unit ($8/hour)
Packing materials $3/unit
Packing labor 20 minutes/unit ($6/hour)
Shipping cost $10/unit
FIXED COSTS
Overhead labor $50,000/year
Utilities $5,000/year
Plant operation $65,000/year
SELLING PRICE $100/unit
a. Calculate the break-even quantity.
b. Calculate the break-even revenue.
c. Develop a chart to show profits at quantities of 2,000, 4,000, 6,000, 8,000, and 10,000. #Minimum 100 words accepted#

Related Discussions:- Break-even quantity.

Range of alternative uses of a commodity, Broader the range of other uses o...

Broader the range of other uses of a commodity, higher the price elasticity of its demand intended for the fall in price though less elastic for the increase in price. As price of

Marris’ Growth Maximisation Model, #question.Constraints of Marris’ Growth...

#question.Constraints of Marris’ Growth Maximisation Model

Monetary policy, Monetary Policy Meaning of Economic Growth: The primary...

Monetary Policy Meaning of Economic Growth: The primary function of an whether socialist or capitalist is to satisfy people maximum wants. It must produce consumer goods to make

Calculate cost of a unit of labor, Suppose a firm's budget were large enoug...

Suppose a firm's budget were large enough to employ 100 units of either labor or capital, the cost of a unit of labor being the same as a unit of capital. The production function i

Perfectly inelastic (zero elastic) supply, Perfectly Inelastic (Zero Elasti...

Perfectly Inelastic (Zero Elastic) Supply Supply is said to be perfectly inelastic if the quantity supplied is constant at all prices.  The supply curve is a vertical straight

Time factor for determinants of demand, Q. Time Factor for Determinants of ...

Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater

Importance of income elasticity, Importance of Income Elasticity If a ...

Importance of Income Elasticity If a country is experiencing economic growth, the income of the people will increase.  However, for those engaged in the production of goods wi

Perfect competition, Perfect Competition   The model of perfect compe...

Perfect Competition   The model of perfect competition describes a market situation in which there are: i.         Many buyers and sellers to the extent that the supply of

Demand management policies for unemployment, Demand management policies ...

Demand management policies These policies are intended to increase aggregate demand and, therefore the equilibrium level of national income.  They are sometimes called fiscal a

Write Your Message!

Captcha
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