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.

Market price , Normal 0 false false false EN-IN X-NON...

Normal 0 false false false EN-IN X-NONE X-NONE

Short-run and long-run, 1. Explain the industry and describe the general pa...

1. Explain the industry and describe the general pattern of change of the particular market model. 2. Hypothesize the basic short-run and long-run behaviours of the model in the

Types of public debt, Types of Public Debt Public debts can be classif...

Types of Public Debt Public debts can be classified according to the purpose for which the money was borrowed into; a.           Reproductive Debt:  where a loan has been

Gm04, “Managerial economics involves use of economic analysis to make busin...

“Managerial economics involves use of economic analysis to make business decisions involving the best use of a firm’s scarce resources” Explain the statement with suitable example.

Why do monopolies exist, Why Do Monopolies Exist? Monopolists have mark...

Why Do Monopolies Exist? Monopolists have market power and as a consequence will charges higher prices and generate less output than a competitive industry. It produces profit

Demand, distinguish between industry demand and firm demand..

distinguish between industry demand and firm demand..

Quantity theory of money, The quantity theory of money In the 17 th C...

The quantity theory of money In the 17 th Century it was noticed that there was a connection between the quantity of money and the general level of prices, and this led to th

Currency swaps, Currency Swaps If the currency of one country is not c...

Currency Swaps If the currency of one country is not convertible, the central banks o f the two countries can exchange their currencies, and the country with the non-convertib

Price-output determination under oligopoly, (Kinky Demand Curve) Short Peri...

(Kinky Demand Curve) Short Period Kinked demand curve was first used by Prof. Paul M. Sweezy to elucidate price rigidity under oligopoly. In an oligopoly market, firm knows that

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