Question
I need helping setting these equations up in excel in order for it to spit out the answer. I need this specifically done in excel,
I need helping setting these equations up in excel in order for it to spit out the answer. I need this specifically done in excel, if it cannot be done then I need the worked out solution
A company has determined that the price and the monthly
demand of one of its products are related by the equation
D=(400p),
where p is the price per unit in dollars and D is the monthly demand.
The associated fixed costs are $1,125/month, and the variable costs are $100/unit.
Use this information to answer Problem 2-52 and Problem 2-53. Select the closest answer. (2.2)
2-52. What is the optimal number of units that should be produced and sold each month?
a. 10 units
b. 15 units
c. 20 units
d. 25 units
2-53. Which of the following values of D represents the breakeven point?
a. 10 units
b. 15 units
c. 20 units
d. 25 units
A manufacturing company leases a building for $100,000 per year for its manufacturing facilities.
In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials.
The product can be sold for $40. Use this information to answer Problem 2-54 through 2-56. Select the closest answer. (2.2)
2-54. How many units per year must be sold for the company to breakeven?
a. 4,800 *view breakeven tab purple for excel sheet
b. 3,000
c. 8,000
d. 6,667
e. 4,000
2-55. If 10,000 units per year are sold, what is the annual profit?
a. $280,000
b. $50,000
c. $150,000
d. $50,000
e. $30,000
2-56. If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year
a. 12,000
b. 10,000
c. 16,000
d. 18,000
e. 5,143
2-57. The fixed costs incurred by a small genetics research lab are $200,000 per year. Variable costs are 60% of the annual revenue. If annual revenue is $300,000, the annual profit/loss is most nearly which answer below? (2.2)
a. $66,000 profit
b. $66,000 loss
c. $80,000 profit
d. $80,000 loss
2-58. A manufacturer makes 7,900,000 memory chips per year. Each chip takes 0.4 minutes of direct labor at the rate of $8 per hour. The overhead costs are estimated at $11 per direct labor hour.
A new process will reduce the unit production time by 0.01 minutes. If the overhead cost will be reduced by $5.50 for each hour by which total direct hours are reduced,
what is the maximum amount you will pay for the new process? Assume that the new process must pay for itself by the end of the first year. (2.4)
a. $25,017
b. $1,066,500
c. $10,533
d. $17,775
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