Assigment-1 Essay

445 WordsOct 28, 20142 Pages
#2. A. Total Revenue (12,000 x 25) =$300, 000 Variable Cost (12,000 x 9) = 108, 000 Contribution Margin 192, 000 FC (60, 000) Profit $132, 000 TC= FC + VC TC= 60,000+108,000= $168,000 B. Break-even Volume calculation 25x = 9x + 60, 000 25x-9x = 60,000 16x = 60, 000 x = 3, 750 units #4. 0.40x + = 0.15x + 25, 000 0.25x = 25, 000 x = 100, 000 monthly break-even units #12. 0.60x = 0.15x +25,000 0.60x – 0.15x = 25, 000 0.45x = 25, 000 x = 55, 556 units The break=even volume would decline from 100, 000 units to 55, 556 units if the unit sales price is increased from $0.40 to $0.60. #14. 0.60x = 0.22x + 39,000 0.60x -0.22x = 39, 000 .38x = 39, 000 x = 102, 632 units If advertising cost is increased by $14, 000 in problem 13, the break-even volume would increase from 65, 789 units to 102, 632 units #20. A. Total revenue = variable cost + fixed cost 14,000x = $0.35(14,000)+ $7, 500 14,000x = $4,900 + 7,500 14,000x = 12,400 x = $0.89 B. If Annie does not sell the projected units of 2,000 or more at each of the seven home games, she will have to increase her unit sales price to break-even or at least realize a profit. #22. A. 18,000x = 12,000x + 350,000 18,000x – 12,000x = 350,000 6,000x = 350,000 x = 59 students B. TR (18,000 x 75) = 1,350,000 VC (12,000 x 75) = 900,000 CM 420,000 FC (350,000) Profit 100,000 C. TR (24,000 x 35) =

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