Question: Question 1. Tom Johnson Manufacturing intends to increase the capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for

Question 1. Tom Johnson Manufacturing intends to increase the capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $75,000 and for proposal, B is $50,000. The variable cost for A is $18 and for B,$12. The revenue generated by each unit of A is 30 and B is $28. a. What is the breakeven point in units and in dollars for proposal A? b. What is the breakeven point in units and in dollars for proposal B? c. At what variable cost proposal A should pay to the supplier to achieve break even when the sales volume is 6000 units? d. Find the volumes of A and B such that the volume of A is more than B by 500 and the profit of B is more than A by 45000

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!

Penguin purchased 75% of Star on January 1, 2015 for $2,200,000. The FV of the noncontrolling interests was 700,000. The book value of Stars equity was $2,300,000 at the time. Penguin uses the equity...

Q 2 . Tom Johnson Manufacturing intends to increase the capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $ 5 6 , 0 0 0 and for...

Tom Johnson Manufacturing intends to increase the capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $75,000 and for proposal, B is...

need your assistance with solver. I have some of the answers but not sure how to put it in the solver application. I have attached the questions, answers and the spreadsheet with solver (I think)....

ManiaMarbles intends to increase production capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $59,000, and for proposal B,...

.. 8.5 Subway, with more than 25,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three loca- tions are being considered. The following table gives the factors for each...

2-30 Bismarck Manufacturing intends to increase capac- ity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B,...

1 That is the monthly profit or loss if the company changes to the Hi-Speed shredder and sells 60,000 bags per month? c) What is the monthly profit or loss if the company stays with Clunker and sells...

363 SUPPLEMENT 7 CAPACITY AND CONSTRAINT MANAGEMENT 363 ELIO L. ly improve the product ent at an additional fixed ease to 5.60, but volume higher-quality product. ment?AX blem S7.23 is now con- sing...

need help with part B 2.30 Bismarck Manufacturing intends to increase capac- ity through the addition of new equipment. Two vendor have presented proposals. The fixed cost for proposal Ais S65.000,...

How does CAD relate to CAE and CAM? How do CAD and the Internet promote collaborative design?

A bank issues a $100,000 variable-rate 30-year mortgage with a nominal annual rate of 4.5%. If the required rate drops to 4.0% after the first six months, what is the impact on the interest income...

Is there evidence of insider trading and stock market manipulation?

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...