Homework Packet $1-$ Name:

A$)$ Create a model that computes profit. A business sells a product for $$100$ and it costs $$25$ to produce

a$.$ Add the constraint: It takes $4$ yards of material to make $1$ product and you have $400$ yards available.

b$.$ Solve for the problem:

Profit $=$

B$)$ A company produces miniature windmills. The fixed monthly cost is $$8,000$ and the variable costs is $$65.$ They sell for $$180.$

a$)$ For a volume of $300,$ determine the total cost, total revenue and profit.

TC

TR

Profit

C$)$ Frank produces fertilizer. The fixed monthly cost is $$25,000,$ variable cost is $\mathrm{.}15$ per pound.

They sell for $40$ per pound. Determine the break$-$even volume.

$=$

a$)$ If the maximum operating capacity of Frank's company is $120,000$ pounds of fertilizer per month, determine the break$-$even volume as a percentage of capacity.

b$)$ If Frank's company changes the price from $\mathrm{.}40$ to $\mathrm{.}60$ per pound, what happens to the break$-$even volume? $($What is the new BEP$)$