1.A firm manufactures a product that sells for $22 per unit. Variable cost per unit is $9 and fixed cost per period is $1560. Capacity per period is 1400 units. 

(a) Develop an algebraic statement for the revenue function and the cost function.

(b) Determine the number of units required to be sold to break even.

(c) Compute thebreak-even point as a percent of capacity.

(d) Compute thebreak-even point in sales dollars.

(a)The revenue function is TR=

(Type the expression using x as the variable. Do not include the$ symbol in youranswer.)

(a.2)The cost function is TC=

(Type the expression using x as the variable. Do not include the$ symbol in youranswer.)

(b) The number of units required to be sold to break even is ___ units.

(Round up to the nearest wholenumber.)

(c) Thebreak-even point as a percent of capacity is ___ %.

(Round to two decimal places asneeded.)

(d) Thebreak-even point in sales dollars is $ ___

(Round to the nearest cent asneeded.)

2.Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions.

Sales $858,000

Fixed cost $514,000

Total variable cost 242,370

Total cost 756,370

Net income $101,630

(a) How much is the contribution margin and the contributionrate?

(b) How much does the business need to sell to breakeven?

(c) If the business was to spend $25,000 to upgrade theirprocesses, how much does the business need to sell to breakeven?

(d) If 2% more meals weresold, what would be the resulting netincome?

(a) The contribution margin is $ ___

(Type integer or adecimal.)

(a.2) The contribution rate is ___%. (Round to six decimal places asneeded.)

(b) To breakeven, the business needs sales to be $ ___

(Round up to the nearest cent asneeded.)

(c) If the business was to spend $25,000 to upgrade theirprocesses, it would need sales to be $ ___ to break even.

(Round up to the nearest cent asneeded.)

(d) If 2% more meals weresold, the resulting net income would be $ ___

(Type integer or adecimal.)

3.To pay for his academicfees, Tarek, a collegestudent, is selling a computer accessory to other students. His cost to purchase each piece is $43, and he is planning to sell the accessories for $92 each. Fixed costs for advertising amount to $630.

(a)Compute the contribution margin.

(b)Compute the contribution rate.

(c)Compute thebreak-even point in units.

(d)Compute thebreak-even point in sales dollars.

(a) The contribution margin per unit is $ ___

(Type as wholenumber.)

(b) The contribution rate is ___ %.

(Round to two decimal places asneeded.)

(c) Thebreak-even point in units is ___

(Round up to the nearestunit.)

(d) Thebreak-even point in sales dollars is $ ___

(Round to the nearest cent asneeded.)

4.Ingrid is planning to expand her business by taking on a new product that costs $7.28. In order to market this newproduct, $1220.00 must be spent on advertising. The suggested retail price for the product is $12.59. Answer each of the following independent questions.

(a) If a price of $15.03 ischosen, how many units does she need to sell to breakeven?

(b) If advertising is increased to $1457.00, and the price is kept at $12.59, how many units does she need to sell to breakeven?

(a) If a price of $15.03 ischosen, the number of units she needs to sell to break even is ___

(Round up to the nearest wholenumber.)

(b) If advertising is increased to $1457.00, and the price is kept at $12.59, the number of units she needs to sell to break even is ___

(Round up to the nearest wholenumber.)

5.A firm manufactures a product that sells for $10 per unit. Variable cost per unit is $5 and fixed cost per period is $1500. Capacity per period is 800 units. Perform abreak-even analysis showing a detailedbreak-even chart.

Find the revenuefunction, TR.

(a)TR=

(Type the expression using x as the variable. Do not include the$ symbol in youranswer.)

Find the costfunction, TC.

(b)TC=

(Type the expression using x as the variable. Do not include the$ symbol in youranswer.)

Compute thebreak-even point in units.

(c)Thebreak-even point is ___ units.

(Round up to the nearest wholenumber.)

Find thebreak-even point in sales dollars.

(d)Thebreak-even point in sales dollars is $ ___

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)

(e)Graph thebreak-even chart.

6.The neighbourhood bookstore sells novels for $14 per unit. The cost to purchase one book is $7. The store has fixed costs per month of $1400. The store estimates that they can sell 500 books each month.

(a) Compute thebreak-even point in units.

(b) Compute thebreak-even point in sales dollars.

(c) Compute thebreak-even point as a percent of capacity.

(a) Thebreak-even point in units is ___ books.

(Simplify youranswer.)

(b) Thebreak-even point in sales dollars is $ ___

(Simplify youranswer.)

(c) Thebreak-even point as a percent of capacity is ___ %.

(Round to two decimal places asneeded.)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Problem 1 a1 Revenue Function TR 22x x ... View the full answer