Solution-Determine the optimal monthly order volume for the

Determine the optimal monthly order volume for the product

Assignment Help Cost Accounting

Reference no: EM132549341

A tennis racquet manufacturer is negotiating a lease on land to build a manufacturing plant. The price p charged per tennis racquet will be determined by p = $450 - (0.1) d, where d is the demand quantity. The manufacturer faces variable costs of $25 per tennis racquet. Fixed costs of manufacturing are currently $25,000, in addition to the value of the lease per month being negotiated.

Question (a) For this situation, determine the optimal monthly order volume for this product?

Question (b) How high can the lease be in order for the firm to make a positive profit?

Question (c) You are asked to estimate the per unit cost of a new line of tennis racquet. Past experience has shown that an 80% learning curve applies to the labor required for producing these items. The time to complete the first item has been estimated to be 1.76 hours. How long will it take to complete the 50th?

Reference no: EM132549341

Questions Cloud

Develop a balance sheet and income statement : Develop a balance sheet, income statement, and statement of cash flows. Capitation revenue- $2573881.00,FFS Revenue- $1054658.00

Identify which of the 3ds of diagnosis : Which of the five diagnostic categories is the best fit for the case study - Identify which of the 3D's of Diagnosis those symptoms fall under

How do you verify people and security levels : A few weeks ago, a nearby hospital, which is very similar in operations and scale to Auburn Regional, was the target of a ransomware attack. You have kept.

Printing budget for the mathematics department : Julie is the head of mathematics at Garden Hill High School. The IT department is responsible for managing all computer

Determine the optimal monthly order volume for the product : How high can the lease be in order for the firm to make a positive profit? Determine the optimal monthly order volume for this product?

Measure the effectiveness of proposed solutions : List 4 digital systems to measure the effectiveness of proposed solutions for continuous improvement in an organisation.

Explain why you believe planning is important : Explain in your own words why you believe planning is important. Select one of the following businesses: a large bank, a government agency, or a hospital.

Describe the system affected by disease : Describe the system affected by the disease, the cause(s) of the disease, the symptoms, how the disease is diagnosed, treatments, and prognosis

List alternatives facing abc industries : Discuss how nonmonetary considerations may impact the selection. Select a criterion for evaluation of alternatives. List alternatives facing ABC Industries.

User Account

All Pages

Determine the optimal monthly order volume for the product

Reference no: EM132549341

Reference no: EM132549341

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT