BA Chapter 7
BA Chapter 7
BA Chapter 7
TMC(q) = FC + (VC x q)
TPC(q) = Pq
Parameters Quantity 0
Manufacturing Fixed Cost 234,000 0
Manufacturing Variable Cost per Unit 2 25000
50000
Outsourcing Cost per Unit 3.5 75000
100000
125000
Model 150000
Quantity 156,000 175000
200000
Total Cost to Produce 546,000 225000
250000
Total Cost to Outsource 546,000 275000
300000
Savings due to Outsourcing 0
Two-way Data Table
Parameters Quantity 0
Fixed cost 10000 0
Material cost per unit 0.15 10000
Labor cost per unit 0.1 20000
Revenue per unit 0.65 30000
40000
Model 50000
Quantity 25000 60000
70000
Total revenue 16250 80000
90000
Profit 0 100000
Eastman Publishing Company
Quantity 0
Parameters 1000
Fixed cost 160000 1200
Variable cost per unit 6 1400
Price 51.7142857 1600
1800
Model 2000
Quantity 3500 2200
2400
Profit 0 2600
2800
3000
3200
3400
3600
3800
4000
4200
4400
4600
4800
5000
5200
5400
5600
5800
6000
Cincinnati Cincinnati
Profit 2288.25
10% 12% 14% 16% 18% 20% 22%
24% 26% 28% 30%
Lindsay
₫790,581.86 0% 1% 2%
Annual -10000 -5000
Rate 6% -6000
Year 30 -7000
-8000
FV ₫790,581.86 -9000
-10000
-11000
-12000
-13000
-14000
-15000
-16000
-17000
-18000
-19000
-20000
3% 4% 5% 6% 7% 8% 9%
10% 11% 12%