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3 years ago

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Business

1 answer:

vfiekz [6]3 years ago

3 0

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

a) Influence diagram to calculate profit

attached below

b) derive a mathematical model for calculating profit.

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c) attached below

d) If Cox Electrics makes 12,000 units of the new product

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

= ( R * q ) - ( Fc + ( Vc * q ) )

= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

= -$5200

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Answer:

Explanation:

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capacity needed to produce 2000000 units

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3 years ago

Baker traded a building used in her business for some new land. Baker originally purchased the building for $50,000 and it had a

Fittoniya [83]

Answer:

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

Explanation:

Step 1: Determine the initial loss/gain in value of the building

initial loss/gain=original purchase price-adjusted basis

where;

original purchase price=$50,000

adjusted basis=$30,000

replacing;

initial loss/gain=50,000-30,000=$20,000

initial loss in value=-$20,000

Step 2: Determine the loss or gain from the exchange

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gain=$15,000

Step 3: Determine other additional costs

Costs=loss=-$5,000

Step 4: Determine the net gain/loss

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4 years ago

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- internal rate of return, Used to measure potential profit from an investment
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