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
Thepotemich [5.8K]
2 years ago
8

Two different manufacturing processes are being considered for making a new product. The first process is less​ capital-intensiv

e, with fixed costs of only per year and variable costs of per unit. The second process has fixed costs of but variable costs of only per unit.
What is the break-even quantity, beyond which the second process becomes more attractive than the first?
the volume at which the second process becomes more attractive is ..... units
Business
1 answer:
NeTakaya2 years ago
5 0

Answer:

Hello your question is incomplete below is the complete question

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $49,700 per year and variable costs of $740 per unit. The second process has fixed costs of $391,000 but variable costs of only $160 per unit. a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? the volume at which the second process becomes more attractive is ..... units

answer :  At ≥ 589 units the second process becomes more attractive

Explanation:

A) Determine the breakeven quantity that makes the second process more attractive

the second process has a higher fixed cost of $391000

x = volume of sales that makes process 1 as profitable as process 2

sales = fixed cost + Total variable cost

profit = (( selling price ) * X ) - (variable cost * X ) - fixed cost

<em>Assuming the profit made from process 1 = process 2 </em>

((selling price * X ) - ( variable cost of process 1 * X ) - fixed cost of process 1 =((selling price * X ) - ( variable cost of process 2 * X ) - fixed cost of process 2

hence ;

x = ( fixed cost of process 2 - fixed cost of process 1  ) / ((variable cost of process 1) - (variable cost of process 2 ))

   = ( 391000 - 49700 ) / ( 740 - 160 )

   = 588.44 units ≈ 588 units ( both process will yield same profitability

At ≥ 589 units the second process becomes more attractive

You might be interested in
Select the examples that best represent Agriculture, Food, and Natural Resources customers. Check all that apply.
sergejj [24]

Answer:

A,B,and C

Explanation:

6 0
3 years ago
Wise consumers always understand their needs and wants before they buy.<br> a. True<br> O b. False
Ymorist [56]
False
Hope this helps
6 0
3 years ago
LOL LOOK AT THIS MEME
Norma-Jean [14]

Answer:

Haaa

Explanation:

Blue Sus

4 0
2 years ago
Read 2 more answers
A determination of whether consideration exists depends on a comparison of the values of the things exchanged.
Ann [662]
I think the answer would be true :)
4 0
3 years ago
I WANNA PLAY VIDEO GAMES RN. DO YOU WANNA VIDEO GAMES OR MOBLIE GAMES RN?
Julli [10]

no thanks but if you have questions regarding school topics ill try to be helpful!! lol

Explanation:

4 0
3 years ago
Other questions:
  • iSooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years
    5·1 answer
  • True or false: as a patient, your doctor must have you sign a hipaa consent and release form to share your ephi or phi with insu
    13·1 answer
  • Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's firs
    9·1 answer
  • A friend offers you a ticket to a Chicago Cubs baseball game for $40. You know you can sell the ticket to another friend for $50
    9·1 answer
  • The rule of supply and demand says that
    15·2 answers
  • Research shows that legal action is taken against fraud perpetrators in: Group of answer choices Almost all fraud cases. More th
    14·1 answer
  • One of the difficult issues the organization may run into if it chooses a(n) ______ recruiting option is the presence of a bona
    7·1 answer
  • Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold ever
    5·1 answer
  • Identify the kind of motivation at play based on the consumer’s behavior in the given scenario. Lila is going to purchase a couc
    12·1 answer
  • The Allowance for Doubtful Accounts T-account will have the ______ on the credit side. Multiple choice question. sales discounts
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!