Story Park competes with Splash World by providing a variety of rides. Story sells tickets at $50 per person as a one-day entrance fee. Variable costs are$10 per person, and fixed costs are $240,000 per month. Requirement

1. Compute the number of tickets Story must sell to break even. Perform a numerical proof to show that your answer is correct.

For the coming year, Paladin Inc. anticipates fixed costs of $\$120,000$, a unit variable cost of $\$60$, and a unit selling price of $\$90$. The maximum sales within the relevant range are $\$900,000$.

Compute the maximum possible income from operations.

When making outsourcing decisions a. expected use of the freed capacity is irrelevant. b. the variable cost of producing the product in-house is relevant. c. the total manufacturing unit cost of making the product in-house is relevant. d. avoidable fixed costs are irrelevant.

In the manufacture of a product, the marginal cost of producing $x$ units is $C^{\prime}(x)$ and fixed costs are $C(0)$. Find the total cost function $C(x)$ when:

(a) $C^{\prime}(x)=3 x+4, C(0)=40$

(b) $C^{\prime}(x)=a x+b, C(0)=C_0$

Beck Inc. and Bryant Inc. have the following operating data:

a. Compute the operating leverage for Beck Inc. and Bryant Inc.

For a refrigerator with automatic defrost and a top- mounted freezer, the annual cost of electricity is $55. (a) Evaluating electricity at 8 cents per$kW \cdot h$, determine the refrigerator’s annual electricity requirement, in$kW \cdot h$. (b) If the refrigerator’s coefficient of performance is 3, determine the amount of energy removed from its refrigerated space annually, in MJ.

Under absorption costing, a company had the following per unit costs when 10,000 units were produced.

$$\begin{array}{lr} \text{Directlabor}&\text{\$ 2}\\ \text{Direct materials}&\text{3}\\ \text{Variable overhead}&\underline{\text{\hspace{5pt}4}}\\ \text{Total variable cost}&\text{9}\\ \text{Fixed overhead (\$50,000/10,000 units)}&\underline{\text{\hspace{5pt}5}}\\ \text{Total product cost per unit}&\underline{\underline{\text{\$14}}}\\ \end{array}$$

The company sells its product for $50 per unit. Due to new regulations, the company must now incur$2 per unit of hazardous waste disposal costs and $8,500 per year of fixed hazardous waste disposal costs. Compute the contribution margin per unit. including hazardous waste disposal costs.

he object of this project is to select a compact thermoelectric refrigerator to be shared by you and at least two other students living in the same residence as you do. Survey the other students to determine their needs in order to size the unit. Critically evaluate competing brands. What type and number of thermoelectric modules are used in the unit selected, and what is its power requirement? Summarize your findings in a memorandum.

Refer to the information presented in the preceding exercise. Assume that Video Avenue can avoid $39,000 of direct fixed costs by dropping the DVD product line. Prepare a differential analysis to show whether Video Avenue should stop selling DVDs.

Selected information relating to Yost Company's operations for the most recent year is given below:

$$\begin{matrix} \text{Activity:}\\ \text{Denominator activity (machine-hours)} & \text{45.000}\\ \text{Standard hours allowed per unit} & \text{3}\\ \text{Number of units produced} & \text{14.000}\\ \text{Costs:}\\ \text{Actual fixed overhead costs incurred} & \text{\$ 267.000}\\ \text{Fixed overhead budget variance} & \text{\$ 3.000 F}\\ \end{matrix}$$

The company applies overhead cost to products on the basis of standard machine-hours. 1, What were the standard machine-hours allowed for the actual production? 2. What was the fixed portion of the predetermined overhead rate? 3. What was the volume variance?

The Warren Watch Company sells watches for $26, fixed costs are$155,000, and variable costs are $13 per watch. a. What is the firm’s gain or loss at sales of 9,000 watches? At 15,000 watches? b. What is the break-even point? Illustrate by means of a chart. What would happen to the break-even point if the selling price was raised to$33? What is the significance of this analysis? d. What would happen to the break-even point if the selling price was raised to $33 but variable costs rose to$24 a unit?

A company that manufactures running shoes has a fixed monthly cost of $300,000. It costs$30 to produce each pair of shoes. What is the horizontal asymptote for the graph of the average cost function,

$$\overline { C } ?$$

Describe what this represents for the company.

On a separate sheet of paper, write the letter of the key term that best matches each definition below. the sum of variable and fixed costs

$$\begin{matrix} \text{a. change in quantity supplied} & \text{ g. production function }\\ \text{b. diminishing returns } & \text{h. Law of Supply }\\ \text{c. fixed costs } & \text{ i. total cost }\\ \text{d. marginal analysis } & \text{ j. change in supply }\\ \text{e. marginal product } & \text{k. overhead }\\ \text{f. marginal revenue } & \text{ l. total product}\\ \end{matrix}$$

A lake has roughly the same shape as the bottom half of the solid formed by rotating the curve $2 x^{2}+3 y^{2}=6$ about the x axis, for x and y measured in miles. Conservationists want the lake to contain 1,000 trout per cubic mile. If the lake currently contains 5,000 trout, how many more must be added to meet this requirement?