Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Sandra's company has a machine that can produce a maximum of 50,000 components per annum. She sells each component for $3.50. The fixed costs

image text in transcribed

4. Sandra's company has a machine that can produce a maximum of 50,000 components per annum. She sells each component for $3.50. The fixed costs are $36,000 per annum and variable costs are $0.35 per component. a. Calculate the break-even volume, break-even revenue, and break-even as a percent of capacity per annum. b. If she produced and sold 13,500 components in a year, what was the profit made or loss incurred? c. What is the maximum profit per year that she can expect from her company? fiad 1ne urst that it could create and sell for $90 per student. The

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Denise Lee

1st Edition

1948426129, 9781948426121

More Books

Students also viewed these Finance questions

Question

Divide (x 3 3x 2 + x + 1) by (x 1).

Answered: 1 week ago

Question

=+How can you personalize the language?

Answered: 1 week ago

Question

=+Can your message work in another locale?

Answered: 1 week ago

Question

=+Can you create an idea that spins out?

Answered: 1 week ago