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Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is
[2003]
- a)75
- b)100
- c)150
- d)600
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Two machines of the same production rate are available for use. On mac...
For Machine M1: Fixed cost = Rs 100 Variable cost = Rs 2 per piece For Machine M2: Fixed cost = Rs 200 Variable cost = 1 Rs per piece Total cost = Fixed cost + Variable cost × Number of units.
100 + 2n + 200 + n = 300 + 2n For the first 300 units, selling price is 3.50 Rs per unit.
So the break even point
300 + 3n = 3.50 (n+n)
300 + 3n = 3.50 (2 n)
7n = 300 + 3n = n = 75.
So the break even point
300 + 3n = 3.50 (n+n)
300 + 3n = 3.50 (2 n)
7n = 300 + 3n = n = 75.
Most Upvoted Answer
Two machines of the same production rate are available for use. On mac...
To find the optimal production quantity for each machine, we need to compare the total cost and revenue for each machine.
For machine 1:
Fixed cost = Rs. 100
Variable cost = Rs. 2 per piece produced
Sale price = Rs. 3.50 per unit
For machine 2:
Fixed cost = Rs. 200
Variable cost = Rs. 1 per piece produced
Sale price = Rs. 3.50 per unit
Let's calculate the total cost and revenue for each machine:
For machine 1:
Total cost = Fixed cost + Variable cost per unit * Quantity
Total cost = 100 + 2 * Quantity
Revenue = Sale price per unit * Quantity
Revenue = 3.50 * Quantity
For machine 2:
Total cost = Fixed cost + Variable cost per unit * Quantity
Total cost = 200 + 1 * Quantity
Revenue = Sale price per unit * Quantity
Revenue = 3.50 * Quantity
To find the optimal production quantity, we need to find the quantity that maximizes the difference between revenue and total cost for each machine. This is called the profit.
Profit for machine 1 = Revenue - Total cost
Profit for machine 1 = 3.50 * Quantity - (100 + 2 * Quantity)
Profit for machine 1 = 1.50 * Quantity - 100
Profit for machine 2 = Revenue - Total cost
Profit for machine 2 = 3.50 * Quantity - (200 + 1 * Quantity)
Profit for machine 2 = 2.50 * Quantity - 200
To find the optimal production quantity, we need to set the profit for each machine equal to each other and solve for Quantity:
1.50 * Quantity - 100 = 2.50 * Quantity - 200
-1 * Quantity = -100
Quantity = 100
Therefore, the optimal production quantity for each machine is 100 units.
For machine 1:
Fixed cost = Rs. 100
Variable cost = Rs. 2 per piece produced
Sale price = Rs. 3.50 per unit
For machine 2:
Fixed cost = Rs. 200
Variable cost = Rs. 1 per piece produced
Sale price = Rs. 3.50 per unit
Let's calculate the total cost and revenue for each machine:
For machine 1:
Total cost = Fixed cost + Variable cost per unit * Quantity
Total cost = 100 + 2 * Quantity
Revenue = Sale price per unit * Quantity
Revenue = 3.50 * Quantity
For machine 2:
Total cost = Fixed cost + Variable cost per unit * Quantity
Total cost = 200 + 1 * Quantity
Revenue = Sale price per unit * Quantity
Revenue = 3.50 * Quantity
To find the optimal production quantity, we need to find the quantity that maximizes the difference between revenue and total cost for each machine. This is called the profit.
Profit for machine 1 = Revenue - Total cost
Profit for machine 1 = 3.50 * Quantity - (100 + 2 * Quantity)
Profit for machine 1 = 1.50 * Quantity - 100
Profit for machine 2 = Revenue - Total cost
Profit for machine 2 = 3.50 * Quantity - (200 + 1 * Quantity)
Profit for machine 2 = 2.50 * Quantity - 200
To find the optimal production quantity, we need to set the profit for each machine equal to each other and solve for Quantity:
1.50 * Quantity - 100 = 2.50 * Quantity - 200
-1 * Quantity = -100
Quantity = 100
Therefore, the optimal production quantity for each machine is 100 units.
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Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer?
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Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer?.
Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer?.
Solutions for Two machines of the same production rate are available for use. On machine 1, the fixed cost is Rs. 100 and the variable cost is Rs. 2 per piece produced. The corresponding numbers for the machine are Rs. 200 and Rs. 1 respectively.For certain strategic reasons both the machines are to be used concurrently. The sale price of the first 800 units is Rs. 3.50 per unit & and subsequently it is only Rs. 3.00. The breakeven production rate for each machine is[2003]a)75b)100c)150d)600Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering.
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