Question: Show your work in solving problems. Business Math 1 . A manufacturer plans to introduce a new type of shirt based on the following information.
Show your work in solving problems. Business Math
A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $; variable cost per unit is $; fixed costs are $; and capacity per period is units.
a Calculate the breakeven point
i in units
ii in dollars
iii as a percent of capacity
b Draw a detailed breakeven chart.
c Calculate the breakeven point in units if fixed costs are reduced to $
d Calculate the breakeven point in dollars if the selling price is increased to $
Olfert Greenhouses has compiled the following estimates for operations.
Sales $
Fixed cost $
Variable costs
Net income $
Capacity is a sales volume of $
Perform a breakeven analysis showing
a an algebraic statement of
i the revenue function;
ii the cost function;
b a detailed breakeven chart.
The Excellent DVD Company sells DVDs for $ each. Manufacturing cost is $ per DVD; marketing costs are $ per DVD; and royalty payments are of the selling price. The fixed cost of preparing the DVDs is $ Capacity is DVDs
a Draw a detailed breakeven chart.
b Compute the breakeven point
i in units;
ii in dollars;
iii as a percent of capacity.
c Determine the breakeven point in units if fixed costs are increased by $ while manufacturing cost is reduced $ per DVD
d Determine the breakeven point in units if the selling price is increased by while fixed costs are increased by $
Sana launched a perfume business through Amazon and achieved sales of $ in her first year. She had a total of $ in variable costs and $ in fixed costs. Her capacity for sales was $ this year. Provide an algebraic statement representing her revenue and cost functions, and then compute her breakeven point in terms of dollars and as a percentage of capacity.
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