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Author Question: Excel hardware is introducing a new product on a new product line of capacity 800 units per week at ... (Read 755 times)

mydiamond

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Question 1

Excel hardware is introducing a new product on a new product line of capacity 800 units per week at a production cost of $50 per unit. Fixed costs are $22,400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plan to market the new product at $110 per unit. What is the break-even capacity per week?
◦ 373
◦ 560
◦ 280
◦ 320
◦ 204

Question 2

Excel hardware is introducing a new product on a new product line of capacity 800 units per week at a production cost of $50 per unit. Fixed costs are $22 400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plan to market the new product at $110 per unit. What would be the weekly net income at 90% of the capacity?
◦ $7200
◦ $56 800
◦ $6400
◦ $20 800
◦ $9600


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Marked as best answer by mydiamond on Jun 7, 2019

tranoy

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