Please I need help to check my answer for these questions. 1.Company A has a bui
ID: 1216644 • Letter: P
Question
Please I need help to check my answer for these questions.
1.Company A has a building with a floor area of 200,000 square feet for both the manfufacturing and warehousing operations. The company produces all of the components that go into the product. Varaible costs are estmated to be $20 per unit, and fixed costs per year are $10,875. The selling price per unit is $39. What is the number of units per year required to be sold to make a profit of $25,000?
2.If the standard time of 3 minutes per assembly is reached after the 110th unit, find the time required for the 200th unit. The learning curve rate is 70%
Explanation / Answer
1.
10875 + 20x = 39x
39x -20x = 10875
19x = 10875
X = 572.36 ~ 572
Hence, number of units required per year to be sold is 572 units.