Machine A has a fixed cost of $40000 per year and a variable cost of S60 per unit. Machine B has an unknown fixed cost, but with this process 200 units can be produced cach month at a total variable cost of $2000. If the total costs of the two machines break even at a production rate of 2000 units per year, what is the fixed cost of machine B? Let FCB - fixed cost for B. Variable cost for B-2000/200 - S10/unit Total costs are equal at 2000 units per year. Then, 40,000 + 60(2000 units) = FCB + 10(2000 units) FCB $140,000 per year

Machine A has a fixed cost of $40000 per year and a variable cost of S60 per unit. Machine B has an unknown fixed cost, but with this process 200 units can be produced cach month at a total variable cost of $2000. If the total costs of the two machines break even at a production rate of 2000 units per year, what is the fixed cost of machine B? Let FCB - fixed cost for B. Variable cost for B-2000/200 - S10/unit Total costs are equal at 2000 units per year. Then, 40,000 + 60(2000 units) = FCB + 10(2000 units) FCB $140,000 per year

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Similar questions

Fast pls solve this question correctly in 5 min pls I will give u like for sure Nid For the given cost function C ( x ) = 40000 + 200 x + x ^2 find: a) The production level that will minimize the average cost b) The minimal average cost
BC Company produces 100 pendants per day. The total fixed cost for the plant is $5000 and the total variable cost is $15000 per day. Calculate the oer unit total cost ?
When the variable cost is reduced for linear total cost and revenue lines, the breakeven point decreases. This is an economic advantage because:a. the revenue per unit will increase.b. the two lines will now cross at zero. c. the profit will increase for the same revenue per unit.d. the total cost line becomes nonlinear.
Method Units of Labor Units of Capital 1 50 10 2 20 40 3 10 70 A small company that shovels sidewalks and driveways has 100 homes to service for the winter. It can use various combinations of labor and capital: lots of labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. A summary of the methods is listed above. If hiring labor cost $100/unit and a unit of capital costs $400, what production method should be used? If labor cost increases to $200/unit what method should be chosen? You must show your calculations.
. A call center in India used by U.S. andU.K. credit card holders has a capacity of1,400,000 calls annually. The fixed cost ofthe center is $775,000 with an averagevariable cost of $2 and revenue of $3.50 percall.(a) Find the percentage of the capacitythat must be placed each year tobreak even.
major league baseball plans to sell special commemorative jerseys for the world series. the suppliers says that costs will be C(x)= 10x2-680x-20,000 dollras dor making x jerseys. MLB plans to sell them for 120 dollars each. how many jerseys must be sold for MLB to make a profit?
What is the total annual cost of each machine using annual cost method?
What is the fixed cost? what is the AVC quantity of 10 quantity. Total cost 0. 1000 10. 2000 20. 4000
Please do fast, its important for me. Thanks in advance. Difference between the nominal cost and real cost? 250 words
Cost Analysis A company manufactures fuel tanks for cars. The total weekly cost (in dollars) of producing X fuel tanks is given by.. C(x) = 10000 +90x - 0.05x² %3D Find the exact cost of producing the 501st item. (Round to the nearest 2 decimal places, if needed) HINT: Steps to fiınd actual or exact (cost/revenue/profit) 1. Find the cost of x = 5003B 2. Then find the cost of x = 501%3; 3. Then subtract ASUS 3 近

What is the total costing based on the following shipment? Dimensions: Weight: 4 pieces, 70 in L x 100 in W x 5 in H each piece. 100 kg each piece. Chargeable weight: 400 kg. Total charges CPT CDG airport, Paris, France Origin pick up fee: Origin handling fee: CAD $0.20/kg CAD $0.20 x 400 = CAD $80.00 CAD $45.00 /shipment CAD $45.00 CAD $45.00 Origin terminal handling charges: CAD $0.04/kg CAD $0.04 x 400 = CAD $16.00 NavCan surcharge: B13A Export Declaration: CAD $0.07/kg CAD CAD $0.07 x 400 = CAD $17.50/shipment CAD $28.00 CAD $17.50 Air freight: $17.50/shipment CAN $4.40/kg Fuel surcharge: CAD $0.15/kg CAD $4.40 x 400 CAD $0.15 x 400 CAD $1,760.00 CAD $60.00 Security surcharge: CAD $0.08/kg CAD $0.08 x 400 CAD $32.00 TOTAL $2,040.50 $2,038.50 $2,006.50 $2,667.47
a manufacturer produces certain items at a labor cost of 150 each, the material cost is 75 each, and the variable cost of 2.50 each. if the item has a unit price of 500, how many number of units must be manufactured each mont for the manufacturer to break even if the monthly overhead of 299,750?