Question: For a table manufacturing company, variable cost is $125.00 per Unit, rent is $2,711.00 per month and insurance is $1,131.00 per month. Selling price for

  1. For a table manufacturing company, variable cost is $125.00 per Unit, rent is $2,711.00 per month and insurance is $1,131.00 per month. Selling price for a table is $200.00 per Unit, How much is the company contributing to covering their fixed costs or generating profits?
  2. You run a school in Florida. Fixed monthly cost is $5,207.00 for rent and utilities, $6,397.00 is spent in salaries and $1,384.00 in insurance. Also every student adds up to $91.00 per month in stationary, food etc. You charge $708.00 per month from every student now.
  • You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,833.00, salaries to $6,418.00 and insurance to $2,311.00 per month. Variable cost per student will increase up to $185.00 per month. However you can charge $1,156.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

3.For a table manufacturing company, selling price for a table is $59.00 per Unit, Variable cost is $21.00 per Unit, labor charge is $12.35 per Unit, rent is $510.00 per month and transportation is $1 per tables. If 50 tables are sold in a month how much is the fixed cost for that month?

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