Your small toy manufacturing facility has the following information: Revenue per toy $2.29 Fixed costs $18,000 Material cost per toy $0.375 Electricity cost per toy $0.019 Labor cost per toy Break Even is defined as Revenue = Total Cost Given that we will sell 15,000 toys, what must the Labor cost per toy be to break even?
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Break-even point is the point where the cost of production and revenue of production are equal in an organisation.
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- Economies of scale, production techniques, product design and managerial efficiency are all examples of important O value drivers O cost curves O cost drivers O value curvesDescribe a good or service where you have worked or with which you are familiar where a breakeven analysis would be useful.Break-Even Analysis You own a business selling burgers. It costs Php 7.00 to make one burger and that is your variable cost. You sell each burger for Php 12.50. Your cost for rent, utilities, overhead, etc. is Php 100,000 per month. How many burgers you would need to sell to break even? What should be the selling price per burger if the break-even point will be brought down to 15,000 burgers?
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- A book publisher has fixed costs of $300,000 and variable costs per $8. The book sells for $23 per copy. a. How many books must be sold to break even?Mikey W. Smitty, an emerging rapper, is getting ready to cut his first CD, called “Western Rap.” The cost of record-ing the CD is $5000 but copies are $5 apiece. If the CDs can be sold for $15 each, how many CDs must be sold tobreak even? What is the breakeven point in dollars?6-4. Mikey W. Smitty is confident that demand for his “WesternThe Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…