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Question 1 A lawnmower manufacturer has thefollowing data:
Unit revenue: $200
Unit variable cost: $75
Fixed costs: $400,000 (annually)
Given the above data, what are:
The profit/loss for annual production = 5000?
The annual production at the break-even point?
The profit/loss for annual production = zero?
Question 2 A car engine manufacturer has thefollowing production goals for the next year:
|
Engine |
Quantity |
Machine Req’s |
|
V6 |
2000 |
6hrs |
|
V8 |
1500 |
10hrs |
|
V12 |
100 |
20hrs |
If all three engines can be produced by the same machines andeach of the manufacturer’s machines operate for 2400 hours peryear, how many machines are required for the above
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