Question: 1. Morgan purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,500 per month, she
1. Morgan purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,500 per month, she needs to sell printouts of 26,000 sheets per month. The printing machine has a capacity of printing 35,200 sheets per month, the variable costs are $0.04 per sheet, and the fixed costs are $2,300 per month.
a)Calculate the selling price of each printout.
b)If they reduce fixed costs by $450 per month, calculate the new break-even volume per month.
c)Calculate the new break-even volume as a percent of capacity.
2.Tabitha manufactures a product that sells very well. The capacity of her facility is 208,000 units per year. The fixed costs are $184,000 per year and the variable costs are $9 per unit. The product currently sells for $17.
a)What total revenue is required for a net income of $365,000 per year?
b)What total revenue is required for a net income of $365,000 per year?
3.Peach Company sells a line of toys for $33 each. The variable costs per toy are $7 and the fixed costs per week are $2,730. Calculate the number of toys that need to be sold every week to break even.
4.A manufacturer of ovens sells them for $1,980 each. The variable costs are $1,000 per unit. The manufacturer's factory has annual fixed costs of $210,000. Given the expected sales volume of 3,300 units for this year, what will be this year's net income?
5. Meadow Inc. sells shoes for $94 each. The variable costs per shoe are $47 and the fixed costs per week are $3,008.
a)Calculate the number of shoes that need to be sold every week to break even.
b)If 56 shoes were sold, calculate the net income in a week.
c)How many shoes must be sold to make a profit of $1,088.00 in a week?
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