Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 10 Feb 2018 My Price 5.00

Zinc Energy Resources Co.

Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc-air battery are: The battery housing is $8, materials are $6, and direct labor is $6 per unit. Retooling the existing factory facilities to manufacture the zinc-air batteries amounts to an additional $1 million in equipment costs. Annual fixed costs include sales, marketing, and advertising expenses of $1 million; general and administrative expenses of $1 million; and other fixed costs totaling $2 million. Please answer the following questions. a. What is the total per-unit variable cost associated with the new battery?

b. What are the total fixed costs for the new battery?

c. If the price for the new battery was set at $35, what would the break-even point be?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 10 Feb 2018 11:02 PM My Price 5.00

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