Question: $20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead

$20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead expenses (which is charged at 200 % of material and purchased parts cost), O& M Cost, and the cost of materials/purchased parts. Given Q as the total number of quantity produced in a year: a) Write the total cost relation for the year. b) Calculate the annual breakeven quantity for this product. c) Determine the total profit and profit per unit if 120% of the annual breakeven quantity are sold d) To reduce the annual breakeven quantity to 25,000 units, what should be the selling price? Problem 2 $20 Operating and maintenance (O&M) cost per unit Fixed cost $1,650,000 Given that the variable cost per unit (v) includes direct labor cost, the overhead expenses (which is charged at 200 % of material and purchased parts cost), O& M Cost, and the cost of materials/purchased parts. Given Q as the total number of quantity produced in a year: a) Write the total cost relation for the year. b) Calculate the annual breakeven quantity for this product. c) Determine the total profit and profit per unit if 120% of the annual breakeven quantity are sold d) To reduce the annual breakeven quantity to 25,000 units, what should be the selling price? Problem 2
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
