Which of the followilA a Interest payments b) Property taxes O Raw materials costs di Rental cost e) All the above are variable costs. 3500 at the end of 5 years. Yearly rental cost 4 A project has a basic cost of 5000 and a market value oft will be 2000 dollars and the vearly labor cost is $2000/labor where 15 labors works on this project The operating cost will be 1.15 dollars per hour. The project operates 7 hours every day (working 365 davs in year), taxes and insurances will be 1500 dollars every year. Find the Equivalent UniformAppual Ca of this project (Hint: EUAC-CR+yearly total expenses) using i-5% a) 37,960 b) 36,960 c) 41,000 d) 38.960 e) 35,600 5. A service system has a rental cost of 2000 dollars per year, the operating cost is 5 dollars per hour and the selling price is 7 dollars per hour. This system operates 8 hours per day 5 days a week. What is the o% reduction in breakeven point in hours (sensitivity) if the selling price increased by 20% a) 58% b) 41% c) 44% d) 51% e) 37%

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Which of the followilA
a Interest payments
b) Property taxes
O Raw materials costs
di Rental cost
e) All the above are variable costs.
3500
at the end of 5 years. Yearly rental cost
4 A project has a basic cost of 5000 and a market value oft
will be 2000 dollars and the vearly labor cost is $2000/labor where 15 labors works on this project The
operating cost will be 1.15 dollars per hour. The project operates 7 hours every day (working 365 davs
in year), taxes and insurances will be 1500 dollars every year. Find the Equivalent UniformAppual Ca
of this project (Hint: EUAC-CR+yearly total expenses) using i-5%
a) 37,960
b) 36,960
c) 41,000
d) 38.960
e) 35,600
5. A service system has a rental cost of 2000 dollars per year, the operating cost is 5 dollars per hour and
the selling price is 7 dollars per hour. This system operates 8 hours per day 5 days a week. What is the o%
reduction in breakeven point in hours (sensitivity) if the selling price increased by 20%
a) 58%
b) 41%
c) 44%
d) 51%
e) 37%
Transcribed Image Text:Which of the followilA a Interest payments b) Property taxes O Raw materials costs di Rental cost e) All the above are variable costs. 3500 at the end of 5 years. Yearly rental cost 4 A project has a basic cost of 5000 and a market value oft will be 2000 dollars and the vearly labor cost is $2000/labor where 15 labors works on this project The operating cost will be 1.15 dollars per hour. The project operates 7 hours every day (working 365 davs in year), taxes and insurances will be 1500 dollars every year. Find the Equivalent UniformAppual Ca of this project (Hint: EUAC-CR+yearly total expenses) using i-5% a) 37,960 b) 36,960 c) 41,000 d) 38.960 e) 35,600 5. A service system has a rental cost of 2000 dollars per year, the operating cost is 5 dollars per hour and the selling price is 7 dollars per hour. This system operates 8 hours per day 5 days a week. What is the o% reduction in breakeven point in hours (sensitivity) if the selling price increased by 20% a) 58% b) 41% c) 44% d) 51% e) 37%
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