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Problems 13.4 through 13.7 are based on the following information. Hambry Enterprises produces a component for recycling uranium used as a nuclear fuel in
Problems 13.4 through 13.7 are based on the following information. Hambry Enterprises produces a component for recycling uranium used as a nuclear fuel in power plant generators in France and the United States. Use the following cost and revenue figures, quoted in IJ_S_ dollars per hundredweight (cwt), recorded for this year to calculate the answers for each plant. France U nlted States Flxed Cost. S million 3.50 2.65 Revenue, S per cwt 8.500 12.500 Cost. S cwt 3. goo 13.4 Determine the breakeven point for each plant 135 Estimate the minimum revenue per hundredweight required for next year if breakeven values and variable costs remain constant, but fixed costs increase by 10%. 13.6 During this year, the French plant sold g50 units in Europe, and the US plant sold 50 units. Determine the year's profit (loss) for each plant. Hambry's president has a goal of SI million pmfit next year at each plant with revenue or fixed 137 cost increases. Determine the decreases in dollar amounts and percentages in variable cost necessary to meet this goal, if the number of units sold is the same as this year.
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