The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool cri
b has a variable demand. Historically, its demand has ranged from 320 to 570 small tools per day with an average of 445. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 1 minute to retrieve from the bins.
What is the average waiting time, in minutes?
6.4， 5.4， 7.4， 1？
What is the average waiting time, in minutes?
6.4， 5.4， 7.4， 1？
1 answer:
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Answer:
b. 18,602 units.
Explanation:
First, we need to use last year's information to determine last year's fixed costs.
Price (P1) = $7.68
Variable costs (VC1) = $2.25
Units sold to break-even (n1) = 21,800
At the break-even point, net income is zero and the fixed cost can be found by:
With information from last, information for the current year can be determined:
Price (P2) = $10.00
Variable costs (VC2) = $2.25 x 1.3333 = $3.00
Fixed cost (FC2) = $118,374 x 1.10 = $130,211.4
The number of units required to break even is:
Rounding up to the nearest whole unit, Dorcan Corporation must sell 18,602 units to break-even.