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  • Problem Solving - MNGMNT Scie-Stepbystep

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    Arrah mae Santiago
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    This document provides step-by-step explanations of calculating total costs, total revenue, profit, and breakeven units for 4 different companies. It shows that Company 1 has a breakeven of 54,795 units. Company 2 has a profit of $22,500 and a breakeven of 48 units. Company 3 has a loss of $253,714 and a breakeven of 103,392 units. The breakeven for Company 4 is 8 units.

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    PROBLEM SOLVING - MNGMNT SCIE-STEPBYSTEP

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    This document provides step-by-step explanations of calculating total costs, total revenue, profit, and breakeven units for 4 different companies. It shows that Company 1 has a breakeven of 54,795 units. Company 2 has a profit of $22,500 and a breakeven of 48 units. Company 3 has a loss of $253,714 and a breakeven of 103,392 units. The breakeven for Company 4 is 8 units.

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    9 views2 pages

    Problem Solving - MNGMNT Scie-Stepbystep

    Uploaded by

    Arrah mae Santiago
    This document provides step-by-step explanations of calculating total costs, total revenue, profit, and breakeven units for 4 different companies. It shows that Company 1 has a breakeven of 54,795 units. Company 2 has a profit of $22,500 and a breakeven of 48 units. Company 3 has a loss of $253,714 and a breakeven of 103,392 units. The breakeven for Company 4 is 8 units.

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    of 2

    Step-by-step explanation

     
    1. 
    a. Total Cost = Fixed Cost + ( Variable Cost x Quantity )
    Total Cost = 20,000,000 + ( 35 x 3,000,000 )
    Total Cost = 20,000,000 + ( 105,000,000 )
    Total Cost = $125,000,000
     
    b. Breakeven(units) = Fixed Costs / (Price - Variable Cost)
    Breakeven(units) = 20,000,000 / (400 - 35)
    Breakeven(units) = 20,000,000 / (365)
    Breakeven(units) = 54,794.52  round up!
    Breakeven(units) = 54,795 units
     
    2. 
    a. Total Cost = Fixed Cost + ( Variable Cost x Quantity )
    Total Cost = 120,000 + ( 1,000 x 57 )
    Total Cost = 120,000 +( 57,000 )
    Total Cost = $177,000
     
    Total Revenue = Price x quantity 
    Total Revenue = 3,500 x 57
    Total Revenue = $199,500
     
    Total Profit = Total Revenue - Total Cost
    Total Profit = $199,500 - $177,000
    Total Profit = $22,500
     
    b. Breakeven(units) = Fixed Costs / (Price - Variable Cost)
    Breakeven(units) = 120,000 / (3,500 - 1,000)
    Breakeven(units) = 120,000 / (2500)
    Breakeven(units) = 48 units
     
     
    3. 
    a. Total Cost = Fixed Cost + ( Variable Cost x Quantity )
    Total Cost = 253,000 + [ (0.27/90) x 2,566 ]
    Total Cost = 253,000 + (0.003 x 2,566)
    Total Cost = 253,000 + (7.70)
    Total Cost = $260,000.70
     
    Total Revenue = Price x quantity 
    Total Revenue = 2.45 x 2,566
    Total Revenue = $6,286.70
     
    Total Profit = Total Revenue - Total Cost
    Total Profit = $6,286.70 - $260,000.70
    Total Profit = - $253,714.00
     
    b. Breakeven(units) = Fixed Costs / (Price - Variable Cost)
    Breakeven(units) = 253,000 / (2.45 - 0.003)
    Breakeven(units) = 253,000 / (2.447)
    Breakeven(units) = 103,391.91 units    round up!!!
    Breakeven(units) = 103,392 units
     
    4. 
    Breakeven(units) = Fixed Costs / (Price - Variable Cost)
    Breakeven(units) = 125,000 / (22,400 - 4,700)
    Breakeven(units) = 125,000 / 17,700
    Breakeven(units) = 7.06     round up!!!
    Breakeven(units) = 8 units

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