Assume the audience for Who Wants to Be a Millionaire on a local cable channel is 115,000. During the months of January and Febr
2 answers:
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Answer:
a. 19 units
b. $56,452
c. Facility B shall be chosen.
Explanation:
As for the provided information,
We have
Costs under facility A
Cost per generator = $1,300
Setting up cost = $22,500
Number of generators = 20
Costs under facility B
Cost per generator = $950
Fixed cost = $35,000
Number of generators = 42
Selling price of generator = $2,500
a. Break even point for Type A, in units
=
Fixed cost = $22,500
Contribution per generator = $2,500 - $1,300(Variable cost) = $1,200
Break even point in units =
since units can not be in decimals, it will be 19 units.
b. For type B contribution margin in percentage shall be:
Selling price - variable cost = $2,500 - $950 = $1,550
Contribution margin = 1,550/2,500 = 62%
Break even in dollars = $35,000/62% = $56,451.61
c. If facility Q has fixed cost = $40,000
and unit cost = $800
contribution = $2,500 - $800 = $1,700
Thus, break even in units = $40,000/1,700 = 23.5 = 24 units
As the break even for facility b = $35,000/1,550 = 22.58 = 23 units
Thus, since facility B has least break even the facility B shall be chosen, as for facility A the break even is low but profit will not be there as maximum capacity is 20 units.
Answer:
Explanation:
Movement from D to C.
Lorenz curve is a curve used to depicts how income is been distributed within an economy, it also shows the progressive share of income within various segment of the population. Lorenz curve was originated by an American Economist called Max O Lorenz in 1905.
