Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with number 2 and 3 please step by step and formulas. thank you Modern Lighting is looking at carrying a new line

image text in transcribed

i need help with number 2 and 3 please step by step and formulas. thank you

Modern Lighting is looking at carrying a new line of lamps. Modern Lighting will buy these lamps for $11.76 each, with additional variable costs of $2.36 per unit. The company expec to sell the lamps for a price of $21.27. Setting up to sell the new line will involve fixed cost: of $32,345. How many lamps must Modern Lighting sell in order to just break even on the new lamps? (Rounding: one decimal place.) Answer: 1,710.47(4,523.8) Question 3 Mahmoud Inc. makes a leading line of mowers and tractors. Mahmoud Inc is looking at adding a new electric mower to its line. Setting up to manufacture the mower will involve relevant fixed costs of $2,395,264 for factory space and $1,104,700 for equipment, and variable costs of $2,513 for parts and $637 for direct labor. Mahmoud Inc expects to sell the new electric mower for $5,320 each. Calculate breakeven sales in units for the new mower. (Rounding: tenth of a unit.)

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

Finance

Authors: Angelico Groppelli, Ehsan Nikbakht

2nd Edition

0812043731, 978-0812043730

More Books

Students also viewed these Finance questions