Question: Problem 1 Fixed startup costs for a new job, including machines, tooling, and training, equal $20,000,000. The variable costs equal $75.00 per unit. For this

 Problem 1 Fixed startup costs for a new job, including machines,tooling, and training, equal $20,000,000. The variable costs equal $75.00 per unit.

Problem 1 Fixed startup costs for a new job, including machines, tooling, and training, equal $20,000,000. The variable costs equal $75.00 per unit. For this problem, ignore overhead and other operating costs. a) If you sell the product for $200.00 per unit, how many units must you sell before breaking even? Use the grid below to graph the cost curve and the revenue curve. Identify the breakeven point. (10 Points) 40,000 80,000 120,000 160,000 200,000 240,000 20,000 60,000 100,000 140,000 180,000 220,000 260,000 b) If you sell 250,000 units: (5 Points) Calculate the average cost per unit. Round your answer to the nearest $0.01. Calculate the total profit earned if you sell these units. c) Assume that you sell 65,000 units per year, for four years, and the same cost per unit and the same price per unit from above. At the end of four years, the equipment and tooling will be sold for $2,000,000. Draw a cash flow diagram representing this scenario, and calculate the net present worth, using an interest rate = 20%. Round your answer to the nearest dollar. (10 Points)

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