A headhunter company has fixed costs of $57,000 per month and variable costs

Question : A headhunter company has fixed costs of $57,000 per month and variable costs : 2141655

9) A headhunter company has fixed costs of $57,000 per month and variable costs of $1000 per customer account. The company currently charges $1150 per month for each account and has 38,000 accounts. It wants to raise the monthly fee to $1160.55 to cover enhanced features such as a new web interface and a newly acquired database, which increases the variable cost by 9 percent. What is the new breakeven point in number of accounts?

10) The cost for operating a commercial truck is knv1/2, where k is a constant of proportionally, v is velocity in miles per hours, and n is the trip length in miles. It is estimated that at 85 mph, the average cost of operation is $52 per mile. The truck owner wants to minimize the cost of operation, which needs to balance against the cost of delays and unscheduled maintenance, which is assumed to be $10 per hour. What is the optimum velocity needed to minimize the total costs?

11) A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and $65 in materials. To break even, 21,000 units must be sold. What is the price of the product?

12) A manufacturing plant is planning to replace outdated equipment with more energy-efficient and environmental-friendly equipment. Two models are under consideration. Model A is sold for $159,000 and can produce at an optimum speed of 78 unit/hour. Model B is sold for the same price, but can produce at an optimum speed of 76 unit/hour. Model A requires 6 hours of maintenance for every 4300 units produced, while Model B requires 5 hours of maintenance for every 3300 units. The maintenance cost for both models is $100 per hour. The variable operating cost is $340 per hour for Model A and $290 per hour for Model B. Due to obsolete parts, there is a sunk cost of $2700 for model A and $1900 for Model B . If the price of the product is $150 per unit and the company expects to sell 145,000 units each year, which model should be selected?

13) A manufacturer of hard board and fiber cement sidings and panels purchased new equipment for its new product line. Three alternatives are under consideration. The costs associated with each alternative are given below. Which alternative is most economical to minimize total life cycle costs, if the life of the equipment is estimated to be 7 years and the company operates on average 3800 hours per year? Assume negligible salvage value.


Investment cost, $~40,000~39,000~41,000

Fixed cost, $/year~4700~4500~4800

Variable cost, $/hour~240~235~243

14) A night vision goggle manufacturer is evaluating a make-versus-purchase situation for a component used in its low-priced products. The component can be purchased at a variable wholesale price of P = 1200 + 50X, where X is the number of items. Alternatively, the component can be produced with a direct material cost of $17 per item and direct labor cost of $38 per item. The manufacturing overhead is allocated at 150% of direct labor cost per item. If the company requires, on average, 575 items each year, should the item be purchased or manufactured?

15) An uninterruptible power system manufacturer is currently deciding between two processes for its new automated assembly system. All defect-free units can be sold at $210 each, and all rejected units can be sold at $11 for scrap. Other related information for each model is given below.




Output rate, units/hour



Daily available production time, hours



Material cost, $/unit



Variable operating cost,$/hour



Variable overhead cost,$/hour



Percent reject




Which process should be adopted to maximize profit per day?

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Economics 1 Year Ago 216 Views
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