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.

Demand forecasting methods, Prediction markets:   These are speculative mar...

Prediction markets:   These are speculative markets fashioned with the intention of making predictions. Assets which are produced possess an ultimate cash worth bound to a specific

Characteristics of oligopoly, Oligopoly can be characterized as follows: ...

Oligopoly can be characterized as follows: Small Number of Sellers: There are more than one sellers of a product though; the number isn't so huge in order to produce perfect

Interaction of supply and demand, Interaction of supply and demand, equilib...

Interaction of supply and demand, equilibrium price and quantity In perfectly competitive markets the market price is determined by the interaction of the forces of demand and

Exchange rate, Assume a floating exchange rate system. The Fed pursues an e...

Assume a floating exchange rate system. The Fed pursues an expansionary monetary policy. Draw how this would look on the graphs below. Mark the new equilibriums. Complete the table

Explain about concave isoquant, Q. Explain about Concave Isoquant? If t...

Q. Explain about Concave Isoquant? If the isoquant is concave to origin it would mean that marginal rate of technical substitution is increasing. This behaviour is explained in

Intended or planned investment, Intended or planned Investment Expendit...

Intended or planned Investment Expenditure on investment depends on business expectations on the chance of making profits and on the availability of funds for the purchase of p

ELASTICITY OF DEMAND, THE COMPANY WOULD TO INCREASE THE PRICE OF STEEL IT...

THE COMPANY WOULD TO INCREASE THE PRICE OF STEEL IT SELLS BY 6% THE MANAGEMENT FORECAST ED THAT INCOME WILL RISE BY 4% NEXT YEAR AND THAT PRICE OF ALUMINIUM WILL FALL BY 2%. IF THE

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