Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following are three small questions in a big question, please help me answer, thank you A manufacturer is considering producing and selling a new
The following are three small questions in a big question, please help me answer, thank you
A manufacturer is considering producing and selling a new product. The fixed costs of production will be 38,000 a year. The selling price of the product will be 182 and the variable cost of each unit will be 118. If the manufacturer produced and sold 8 units what would the profit be? The annual fixed costs of a manufacturing business are expected to be 493,404. The business produces one product which has the following costs: Components and materials (per unit): 24 Labour (per hour): 44 Royalty payment (per unit) = 33 Each unit takes 21 minutes to produce. The annual production budget is 45,646 units. What will be the annual cost of producing the product? Enter your answer in rounded to the nearest 100. The following data relates to a company's operating budget for its next operating year: Sales price per unit () 19 Sales volume (units) 15,000 Costs: Materials () 52,500 Labour () 33,800 Energy () 101,000 Depreciation () 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of 15,000. Depreciation is a fixed cost. An allowance for an energy price increase of 12% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assumptions: Selling prices will be reduced by 12% The sales volume will increase by 11% The rise in the energy prices should be revised to 3% What will be the company's new selling price per unit for the yearStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started