Question: Question 4 6 pts BlazerAuto Inc is considering whether to produce a new line of car. The company estimates that the variable cost for each

Question 4 6 pts BlazerAuto Inc is considering
Question 4 6 pts BlazerAuto Inc is considering
Question 4 6 pts BlazerAuto Inc is considering whether to produce a new line of car. The company estimates that the variable cost for each car to be manufactured and sold is $10000 and the fixed cost per year is $720,000. The selling price is $25000 per car. The supplier that provides the seats for the cars has a maximum yearly production capacity of 20,000. Which of the following represents the best identification of Output, Decision Variable, Parameters, and Constraints? Output: total profit Decision Variable: the quantity of cars to manufacture | Parameters: demand, variable cost ($10K). fixed cost ($720K), selling price ($25K) | Constraints: supplier capacity (205) O Output: total cost | Decision Variable: the quantity of cars to manufacture | Parameters: demand, variable cost ($10K), fixed cost ($720K), selling price ($25K) | Constraints: supplier capacity (20) Output: total cost | Decision Variable: the quantity of cars to manufacture Parameters: variable cost (510K), fixed cost (5720K), selling price ($25K) | Constraints: supplier capacity (20K) Output: total profit | Decision Variable: the quantity of cars to manufacture | Parameters: variable cost ($10K), fixed cost (5720K), selling price ($25K) Constraints: supplier capacity (20K) None of the above 6 pts Question 5 Using the same data as in the BlazerAuto Inc question, i.e., variable cost of $10,000, fixed cost of $720,000 and selling price of $25000, what is the breakeven point for BlazerAuto Inc? Formulas you may need: Break-even quantity is the quantity that makes the following equation hold: Profit=0 = Total Revenue = Total Cost 45 48 O 50 54 60

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!