Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine manufacturer sells each machine for $6,000. The fixed costs are $269,650 per annum, variable costs are $2,200 per machine, and the production capacity

A machine manufacturer sells each machine for $6,000. The fixed costs are $269,650 per annum, variable costs are $2,200 per machine, and the production capacity is 80 machines in a year.

a. What is the break-even volume? Round up to the next whole number

b. What is the break-even revenue? Round to the nearest cent

c. What is break-even as a percent of capacity per annum? % Round to two decimal places

d. What is the profit or loss made if 66 machines are sold in a year? Round to the nearest cent

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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

9th Edition

0814408648, 978-0814408643

More Books

Students also viewed these Finance questions

Question

4. What two skills are required to improve health care quality?

Answered: 1 week ago

Question

How often do you meet with your graduate students?

Answered: 1 week ago

Question

How can we use language to enhance skill in perceiving?

Answered: 1 week ago