Microaplications Inc. is a company specializing in the production and sale of co
ID: 2647806 • Letter: M
Question
Microaplications Inc. is a company specializing in the production and sale of computer software, the fixed cost of the company is $ 23,000 and the unit variable is $ 6.50. the price of a computer program is $ 40.a) determine the minimum amount of programs that the company should sell and revenues associated with that volume so that the firm can be maintained in operation.
B) the company has set a target, achieving $ 40,000 in profit. What is the amount of income to achieve production, to meet the objective?
C) prices of computer programs, decreased by 5%. Calculate new breakevenpoint and revenues associated with it. Microaplications Inc. is a company specializing in the production and sale of computer software, the fixed cost of the company is $ 23,000 and the unit variable is $ 6.50. the price of a computer program is $ 40.
a) determine the minimum amount of programs that the company should sell and revenues associated with that volume so that the firm can be maintained in operation.
B) the company has set a target, achieving $ 40,000 in profit. What is the amount of income to achieve production, to meet the objective?
C) prices of computer programs, decreased by 5%. Calculate new breakevenpoint and revenues associated with it. Microaplications Inc. is a company specializing in the production and sale of computer software, the fixed cost of the company is $ 23,000 and the unit variable is $ 6.50. the price of a computer program is $ 40.
a) determine the minimum amount of programs that the company should sell and revenues associated with that volume so that the firm can be maintained in operation.
B) the company has set a target, achieving $ 40,000 in profit. What is the amount of income to achieve production, to meet the objective?
C) prices of computer programs, decreased by 5%. Calculate new breakevenpoint and revenues associated with it.
a) determine the minimum amount of programs that the company should sell and revenues associated with that volume so that the firm can be maintained in operation.
B) the company has set a target, achieving $ 40,000 in profit. What is the amount of income to achieve production, to meet the objective?
C) prices of computer programs, decreased by 5%. Calculate new breakevenpoint and revenues associated with it.
a) determine the minimum amount of programs that the company should sell and revenues associated with that volume so that the firm can be maintained in operation.
B) the company has set a target, achieving $ 40,000 in profit. What is the amount of income to achieve production, to meet the objective?
C) prices of computer programs, decreased by 5%. Calculate new breakevenpoint and revenues associated with it.
Explanation / Answer
a) Breakeven quantity is given by:
40*Q = 23,000 + 6.5*Q
Q = 686.57 or 687
Revenue = 687*40 = 27480
b. Profits = 40,000
or, 40,000 = 40*Q - 23,000 - 6.5*Q
or, Q = 1880.60 or 1881
Income = 1881*40 = 75240
c. New price = (1-0.05)*40 = 38
Breakeven:
38*Q = 23,000 + 6.5*Q
Q = 730.16 or 731
Revenue = 731*38 = 27778