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Author Question: A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and ... (Read 79 times)

burton19126

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Question 1

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year?

Question 2

A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.


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Marked as best answer by burton19126 on Dec 3, 2019

JCABRERA33

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burton19126

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Reply 2 on: Dec 3, 2019
:D TYSM


at

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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