Calculating break even

Assignment Help Managerial Economics
Reference no: EM1372582

Writers' Pleasure, manufactures gold plated pen and pencil sets. It has a fixed yearly cost of $50,000, and average variable cost is $20. It expects to sell 5,000 sets next year.

a. In order to just break even, how much will the company have to charge for each set?

b. Based on its plant investment, the company requires an annual profit of $30,000. How much will it have to charge per set to obtain this profit? (Quantity sold will still be 5,000 sets.)

c. If the company wants to earn a markup of 50 percent on its variable costs, how many sets will it have to sell at the price obtained in part b?

 

Reference no: EM1372582

Questions Cloud

What horizontal force does the seat exert on the driver : An 854 kg (1887 lb) dragster, starting from rest, attains a speed of 27.1 m/s (60.7 mph) in 0.59 s.
Minimize occurrence of corporate crimes : What are some of the causes of these crimes? What actions can be taken to minimize the occurrence of corporate crimes?
How would you recover from this service crisis : Suppose you were manager of restaurant and you were told honestly that a couple eating dinner has just seen a mouse, what would you say to them, how would you recover from this service crisis.
What is the net upward force on an airplane wing : A 10.00kg box on a smooth, frictionless, horizontal surface experiences a downward force of 30n at an angle of 40 degrees to the horizontal. The box moves 1.50 m to the right. What was the work done by gravity.
Calculating break even : Writers' Pleasure, manufactures gold plated pen and pencil sets. It has a fixed yearly cost of $50,000, and average variable cost is $20. It expects to sell 5,000 sets next year.
What is labour productivity : Why are you taking this class. Explain. Did you read and understand syllabus requirements for this class. What is labour productivity.
Find the average velocity of the water in the pipe : A cowboy at a dude ranch fills a horse trough that is 1.5 m long, 60 cm wide and 40 cm deep. He uses a 2.0cmdiameter hose from which water emerges at 1.5m/s. How long does it take him to fill the trough.
Diagnos application which has changed from original state : How does third-party plug-ins change process of diagnosing and troubleshooting errors within application? What steps would you take in diagnosing the application which has been changed from its original state?
Organizational methods to prevent burnout : Describe various individual, job role, and organizational methods to prevent burnout. Examine your own personality and share how you react and respond to personal and work-related stress. Provide some insights into how you may work to reduce the ef..

Reviews

Write a Review

Managerial Economics Questions & Answers

  Analyze the short run and long run decision

Assume, after graduation, you take a job in a company in Chile that manufactures faux leather shoes. One day, your boss comes in and says, "this company is not operating at a profit

  Calculate manufacturer fixed cost

The accompanying table demonstrate a car manufacturer's total cost of manufacturing cars. Calculate manufacturer fixed cost

  Estimating profit

Your supervisor recently instituted a plan that encourages her managers to share non private demographic characteristics voluntarily provided by those who buy your company's final product.

  Find profit-maximizing sales quantity and price

Assume the Kalamazoo Competition free Concrete's demand function is D=5,000-50P, its marginal cost is 40 dollar per cubic yard,

  Find the shape of the long run average total cost curve

How can the extent to which presence of economies and diseconomies of scale in an industry help account for size and number of companies in that industry?

  Calculate the total cost and average variable cost

Kate's Katering offers catered meals, and catered meals industry is perfectly competitive. Kate equipment costs $100  per day and is the only fixed input.

  Find the number of selling prduct

Suzie's Silk Scarves is a start up that sells high quality scarves out of a boutique store. The monthly rent of store is $1,500 and Suzie has one manager who runs the store and receives $3,000 each month.

  Determine autocorrelation function of a rectangular pulse

Prepare the sketch the Fourier transform of a rectangular pulse of amplitude 10 V and width 0.1 second that is centered on the zero time axis. Determine the autocorrelation function of a rectangular pulse.

  Calculating total profit and revenue

Assume a company is operating at the minimum point of its short-run average total cost curve, so that marginal cost equals average total cost.

  Economies of scale or diseconomies of scale

Describe any two causes of economies of scale or diseconomies of scale. How is the U shape of long run ATC different from U shape of the short run ATC

  Calculate the maximum profit, price and quantity

The manufacturer of high quality flatbed scanners is trying to decide what price to set for product. The cost of production and the demand for product are assumed to be as follows:

  Explain the price and output agreements

Over the last thirty years the company of Petroleum Exporting Countries has had varied success in forming and maintaining its cartel agreements.

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