Question: PLEASE HELP ANSWERING THE LAST QUESTION Ali Baba Electronics (ABE) produces mobile electronic devices for sale to manufacturing and logistics companies. It is planning production

PLEASE HELP ANSWERING THE LAST QUESTION

PLEASE HELP ANSWERING THE LAST QUESTION Ali BabaPLEASE HELP ANSWERING THE LAST QUESTION Ali BabaPLEASE HELP ANSWERING THE LAST QUESTION Ali Baba

Ali Baba Electronics (ABE) produces mobile electronic devices for sale to manufacturing and logistics companies. It is planning production of RFID scanners to meet emerging market demand. The planned selling price is $31/scanner. ABE's cost accounting group has determined that using existing equipment, the fixed cost of producing scanners is $655000. The estimated variable cost of production is $19.3/scanner. ABE's marketing analysts predict that the market would absorb 37200 scanners annually. At this volume, what is ABE's profit with current equipment? Report by rounding to a whole number with no commas and no $ sign. If the profit is negative, you must include the '-. If the profit is positive do not include the '+. Continuing with ABE, What is the breakeven quantity for scanners using existing equipment? Report by rounding to a whole number with no commas. Answer: a Continuing with ABE: To meet the predicted market demand cost effectively, ABE is considering more technologically superior equipment to produce scanners. This equipment has a fixed cost of $844000 and variable cost of $15/scanner. At what level of market demand (number of scanners) does superior equipment become equally or more cost- effective than the existing equipment? Report by rounding to a whole number with no commas

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