Basics Of Engineering Economy
Basics Of Engineering Economy
2nd Edition
ISBN: 9780073376356
Author: Leland Blank, Anthony Tarquin
Publisher: MCGRAW-HILL HIGHER EDUCATION

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Bags Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700   Given the above information on cost, if you charge $15 per entry, what is the the break even quantity of bags?  At what quantity of bags will profits be maximized?  . Please select any/all viable approaches below:        Using Qb = F/(MR-AVC) where Qb is the break even quantity, the event would break even at 283 bags>     Using the profit maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 200 bags.     Using the profit maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 300 bags.…
T/F  The fixed cost remains same at all level of output.
Fixed cost is $2600, variable cost per unit is $100 and selling price is $60. Find Break Even Point and Total Revenue.
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