Suppose a company has a fixed cost of $170,000 and a variable cost per unit of $

Question

Suppose a company has a fixed cost of $170,000 and a variable cost per unit of $11 it sells its product for $18. A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own? Suppose a company has a fixed cost of $170,000 and a variable cost per unit of $11 it sells its product for $18. A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own? A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own?

Explanation / Answer

Suppose a company has a fixed cost of $170,000 and a variable cost per unit of $11 it sells its product for $18. A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own? Suppose a company has a fixed cost of $170,000 and a variable cost per unit of $11 it sells its product for $18. A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own? A. Calculate its break-even level output B. Calculate how much it must produce to make $110,000, assuming it can sell it all. If it can outsource, and buy the product wholesale from a distributor at $13 each over what level of output should it buy from the wholesalers,and over what level should it produce on its own?

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