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    tony tang
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    The document discusses a company called Trilex Manufacturing that produces masks. It provides the following information: 1) Trilex's fixed costs are $39,000 per month to produce masks. The variable cost is $1.10 per unit and the selling price is $5.50 per unit. Trilex invested $1 million to buy a machine and $500,000 to prepare factory space. 2) The breakeven volume is 8,864 units per month with sales of $48,752. 3) If Trilex earns $60,000 profit per month, the payback period is 2083 years. Other factors to consider include the time value of money, effects of

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    The document discusses a company called Trilex Manufacturing that produces masks. It provides the following information: 1) Trilex's fixed costs are $39,000 per month to produce masks. The variable cost is $1.10 per unit and the selling price is $5.50 per unit. Trilex invested $1 million to buy a machine and $500,000 to prepare factory space. 2) The breakeven volume is 8,864 units per month with sales of $48,752. 3) If Trilex earns $60,000 profit per month, the payback period is 2083 years. Other factors to consider include the time value of money, effects of

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    15 views2 pages

    Tut 13

    Uploaded by

    tony tang
    The document discusses a company called Trilex Manufacturing that produces masks. It provides the following information: 1) Trilex's fixed costs are $39,000 per month to produce masks. The variable cost is $1.10 per unit and the selling price is $5.50 per unit. Trilex invested $1 million to buy a machine and $500,000 to prepare factory space. 2) The breakeven volume is 8,864 units per month with sales of $48,752. 3) If Trilex earns $60,000 profit per month, the payback period is 2083 years. Other factors to consider include the time value of money, effects of

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    Ho 22053551 S

    Name: Tang Tuug


    Tutorial 13
    1. Suppose that Trilex Manufacturing Company estimates its
    fixed costs for producing a line of masks at $39,000 per
    month. The variable cost amount to $1.10 per unit and the
    selling price per unit is $5.50. Before production, Trilex
    invest a million dollar to buy a machine and half a million
    dollar to prepare a dust free factory space.

    a) What is the breakeven volume and sales?

    b) Suppose Trilex earn a $60,000 profit per month what is


    the payback period of the project? What other factors we
    need to consider?
    $ 39,000
    -5
    a) Breakeenvolume :

    $ 5 50
    .
    -
    $1 -
    1 0

    = 8863.64
    8864 ( Round up )
    -

    Sales = 886 4 x $ 5 50 .

    = $ 4 8752

    $
    DPaybackperiodi.gr
    1 50 0 0 0 0

    2
    $6 0 0 0 0 X 1

    =
    2083
    years
    Wedsoneedtoconsider
    about.thetimevdueofmouey.theeteectsofiufktiomorthec.com

    pkxityofinvtentsfhatmeyhaeunequdcashflowwert.ve

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