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Author Question: Citizen sells a watch for $35 at a variable cost of $15 per unit and fixed cost of $1 million per ... (Read 3646 times)

eruditmonkey@yahoo.com

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Question 1

Citizen sells a watch for $35 at a fixed cost of $1 million per annum. Recent recession has seen jump in material cost to $20. What is the new break-even volume of watches per year?
◦ 50 000
◦ 7000
◦ 66 667
◦ 6667
◦ 28 571

Question 2

Citizen sells a watch for $35 at a variable cost of $15 per unit and fixed cost of $1 million per annum. Recent recession has seen jump in material cost by $7. What is the change in profit due to recession if Citizen produces and sells 100 000 watches in a year?
◦ $800 000 increase
◦ $700 000 decrease
◦ $300 000 decrease
◦ $1 800 000 increase
◦ $1 000 000 decrease


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Marked as best answer by eruditmonkey@yahoo.com on Jun 7, 2019

frogdreck123456

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