Determine the percent of plant capacity

Reference no: EM1352225

A manufacturer of electronic products provides the following information relating to revenues, costs and plant capacity. The purpose is to find the answers to the questions that are of primary concern to the company. The data are:

The capacity of the plant (Plant Capacity) is 55,000 units variable cost per unit (Variable Cost) is $ 18 The benefit obtained in each unit sold (Unit Contribution Margin) is $ 22 The total fixed costs (Total Fixed Cost) are $550,000 Tax rate (Tax Rate) 15% The expected gain (Desired Profit) is $85,000

8. What percent of plant capacity will be used by the company, if you want to cover their sales with total costs, payment of taxes and the expected gain?

9. What would be the selling price of the product for the plant was in its break even point, if the fixed cost was $ 500,000; the variable cost was $ 50, the maximum amount to sell out 40,000?

10. On the break even point the price of question # 9, if the company wanted to make a profit of 30%, what would be the selling price of the product?

Please write the formulas used and the relevant computer.

Reference no: EM1352225

Questions Cloud

Management of benefits : Management of Benefits - What could be done by management do to benefits planning and design

Cross-cultural relevance and effectiveness in therapeutic : Cross-cultural relevance and effectiveness in therapeutic techniques are discussed. We address the questions:

Classify production function by returns to scale : Classify this production function by returns to scale. Comput the firms long-run cost function.

Explain and conduct an interview with an employee : Explain and Conduct an interview with an employee (preferably a supervisor or manager) at your current job or a previous job

Determine the percent of plant capacity : A manufacturer of electronic items provides the following data relating to revenues, costs and plant capacity. The purpose is to find answers to the questions that are of primary concern to the corporation.

Program-visual basic to compute tips for services rendered : Write a program in Visual Basic 2010 to compute tips for services rendered. The program should request the person's occupation, the amount of the bill and the percentage tip

Appropriate culture-based agency : Would a therapist in my area show the greatest professional competence by referring his or her client out to the appropriate culture-based agency rather than working with him or her directly?

What could be done to motivate people to spend : What could be done to motivate people to spend more so as to increase aggregate demand and invariably, create employment possibilities.

Describe the ceo has decided that the company needs : Describe The CEO has decided that the company needs to have a formal pay structure something they haven't had in the past and Create a PowerPoint presentation explaining the specific steps you need to take to create a new pay structure.

User Account

All Pages