1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Volgvan
3 years ago
15

Factory X manufactures steam cleaners for engines and has a high level of sales variability. The units sell for $3,200 each but

each unit contains about $1,280 in components and direct labor cost. Factory X also keeps the plant open even when sales are low at a cost of approximately $1,000,000 per year. List some examples of fixed costs for a typical manufacturing plant.
How much are the variable costs in this example?
The cost of the variable costs in this example are
What is the break-even level of units in this example?
What is the break-even level of sales in this example?
Business
1 answer:
Scilla [17]3 years ago
4 0

Answer:

a. Some examples of fixed costs are; Insurance, utility charges, and Rent.

b. Variable cost=$1,280

c. Fixed costs=$1,000,000

d. Break-even level of units=521 units

e. Break-even level of sales=$1,667,200

Explanation:

a.

Fixed costs are the expenses that do not change with the level of output, while the variable costs depend on the amount of output produced. The fixed costs typically stay the same with the production levels. The variable costs on the other hand change as the production changes.

Some examples of fixed costs in a typical manufacturing plant are;

1. Insurance

2. Utility charges

3. Rent

4. Property taxes

b.

The variable costs are the Material and labor costs, since a higher or a lower level of output will affect the quantity of materials and labor needed. Thus their costs change with the output.

Variable cost=material cost+labor costs=$1,280

c.

The fixed costs=$1,000,000 since they don't vary with the sales. Sales is a direct function of the output.

d. The break even point is the point at which the Revenue from sales equal the costs. This can be expressed as;

Revenue=price per unit×number of units sold

where;

price per unit=$3,200

number of units sold=n

replacing;

Revenue=3,200×n=3,200 n

Total cost=fixed cost+(cost per unit×number of units)

fixed cost=$1,000,000

cost per unit=$1,280

number of units=n

replacing;

Total costs=1,000,000+(1,280×n)=1,280 n+1,000,000

Since at break-even point, revenue equals cost;

3,200 n=1,280 n+1,000,000

3,200 n-1,280 n=1,000,000

1,920 n=1,000,000

n=1,000,000/1,920

n=520.83

n=521

Number of units is approximately 521 at break-even

Break-even level of units=521 units

e.

Break-even sales=price per unit×break-even level of units

where;

price per unit=$3,200

break-even level of units=521 units

replacing;

Break-even level of sales=3,200×521=$1,667,200

You might be interested in
Suppose that real GDP is currently $ 13.8 trillion and potential real GDP is $ 14.0 trillion, or a gap of $ 200 billion. The gov
MAXImum [283]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
3 years ago
The_______of the strategic sourcing process, which is sometimes kicked off in response to an entirely new need within an organiz
VladimirAG [237]

The supply chain Management of the strategic sourcing process is sometimes kicked off in response to an entirely new need within an organization.

Explanation:

The main purpose of strategic sourcing is to save money, acquisition process, supplier performance, and minimizing risk.

Based on the seven steps the strategic source processing is performed. They are profile the category means that it defines the categories and commodities in it.

The second step is supply market analysis describes about the cost components of the products or service. Develop the strategy is the next step in which decides where to buy while minimizing risk and cost and how to develop sourcing strategy. The next step is selecting source process which is used as a request for proposal process.

Then negotiate and selection suppliers is used to conduct multiple rounds of negotiation to get a shortlist.

The sixth step is implement and integrate are used for implementation process. The final step is benchmark and track results is the key element for sourcing process.

5 0
3 years ago
Economists use real gdp per capita to measure economic growth: even though nominal gnp per capita is a far superior measure of e
denis23 [38]
1. Economists use real GDP as a measure of living standards as it eliminates the effects of inflation by using the price index of the base period over the current period, which is also called the GDP deflator.

2. Real GDP per capital. Reason explained above.

3. 5million dollars divided by 100, therefore it would be 5000.

4. False. With the advancement of technology, capital becomes more productive and efficient, meaning they produce more output using the same amount of input.
7 0
3 years ago
How can a sales user relate an opportunity to a campaign?
jekas [21]

Answer:

Using the campaign influence related list on the opportunity.

Explanation:

By using the campaign influence related list on the opportunity a sales user can relate an opportunity to the campaign. With the help of campaign influence, the person will be allowed to other person campaigns listed on an opportunity. A person must hire a person for a role in the opportunity. A hired person will be an expert in doing so therefore the productivity will also be rise by hiring the expert.

4 0
3 years ago
Select the correct statement regarding relevant costs and revenues.
givi [52]

Answer:

d) Avoidable costs are also known as sunk costs.

Explanation:

The avoidable cost are those cost that can be ignored while making decision. The sunk costs are all those cost which already been incurred and it will not be effected by the change in decision. The sunk costs are already been expensed so, whatever decision you make it will not be changed.

4 0
3 years ago
Other questions:
  • You have ​$. You put ​% of your money in a stock with an expected return of ​%, ​$ in a stock with an expected return of ​%, and
    14·1 answer
  • Why does the Study state that "unless you are sleeping, it is almost impossible not to be communicating"?
    15·2 answers
  • Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which of the following b
    6·1 answer
  • Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On t
    12·1 answer
  • When you have been in disorganized work situations where the number of people wanting supplies is larger than the amount of supp
    15·1 answer
  • How can an employee keep hot held foods safe from contamination
    5·1 answer
  • The equivalent annual cost method is most useful in determining: Group of answer choices the annual operating cost of an idle ma
    11·1 answer
  • Name a product or a company that you are familiar with. Discuss how environmental forces (social, economic, technological, compe
    8·1 answer
  • Debit balance with Binod Rs. 50,000.​
    11·1 answer
  • Is every leader a manager? Is every manager a leader? What skills do managers and leaders share? What skills make them different
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!