Paragraph Styles Edi Assignment #14 - Pricing Problems 1. Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars. a. What was Smith company's total revenue for the month? b. What is the unit variable cost per jar? What is the total variable cost for the month? c. What is the total fixed cost associated with producing the kits for one month? d. What was Smith Company's profit for the month? 2. The Davis Company's fixed costs for the year are estimated at $30,000. Its product sells for $1.20 per unit. The variable cost per unit is 30 cents. What is the break-even point? 3. Suppose ABC Company executives estimate that the unit variable cost for their electronic device is $100, the fixed cost related to the product is $10 million annually, and the target sales volume for next year is 100,000 units. What sales price will be necessary to achieve a target profit of $1 million