Question: A product is currently made using Process A where fixed cost is $ 8 , 0 0 0 per year and variable cost is $

A product is currently made using Process A where fixed cost is $8,000 per year and variable cost is $50 per unit. The firm currently sells 200 units of the product at $140 per unit. A manager is considering an alternative Process B. The fixed cost of the procress B is $12,000 per year and the variable cost is $20 per unit. If a price of $80 will allow 400 units to be sold. What is the break-even point for the Process B?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

A product is currently made using Process A where fixed cost is $8,000 per year and variable cost is $50 per unit. The firm currently sells 200 units of the product at $140 per unit. A manager is...

Q:

A product is currently made using Process A where fixed cost is $8,000 per year and variable cost is $50 per unit. The firm currently sells 200 units of the product at $140 per unit. A manager is...

Q:

A product is currently made using Process A where fixed cost is $8,000 per year and variable cost is $50 per unit. The firm currently sells 200 units of the product at $140 per unit. A manager is...

Q:

A product is currently made using Process A where fixed cost is $ 7 5 0 0 per year and variable cost is $ 5 0 per unit. The firm currently sells 2 0 0 units of the product at $ 1 5 0 per unit. A...

Q:

A product is currently made using Process A where fixed cost is $8,000 per year and variable cost is 540 per unit. The frm currently sells 200 units of the product at $165 per unit. A manager is...

Q:

A product is currently made using Process A where foxed cost is $8,000 per year and varuble cost is 550 per unit The frum currently sels 200 unks of tho product at $140 per init A manager b...

Q:

A product is currently made using process a fixed cost is 8 0 0 0 per year and variable cost is $ 5 0 per unit the firm currently sells 2 0 0 units of the product $ 1 4 0 per unit a manager is...

Q:

A product is currenty made using Process A where fixed cost is $8,000 per year and variable cost is $50 per unit The firm currently sels 200 units of the product at $140 per unit A managger 15...

Q:

The Mini-Max Company has the following cost information on itsnew prospective project. calculate the present value break-even -point intial investment:$700 fixed cost are $200 per year variable...

Q:

1. The B&N book store sells OM book. Fixed cost is $20,000 per year, variable cost per unit is $10, and Selling price per unit is $12. How many units should be required on sales in order to realize a...

Q:

1. what possible conditions did this young woman have and why did it manifest at this time 2. would any members of her family have a similar disease 3. what enzyme defect did she have 4. what other...

Q:

In its income statement for the year ended December 31, 2014, Lemere Company reported the following condensed data. Operating expenses ............$ 725,000 Cost of goods sold .......... 1,289,000...

Q:

Accounts can be categorized into the following groups: Option A Balance Sheet, Profit and Loss, Non - Posting. Option B Balance Sheet, Profit and Loss Option C Balance Sheet, Profit and Loss, Owner's...

Q:

The annual demand for an item is 1,700 units. The order cost is $7. Unit cost is $8 and the unit holding cost per year is 18% of the item's value. The order quantity is 125 units. What are the total...