1. 'St Catherine Animal Feeds' produces animal feed. The fixed monthly cost of production is $700000 and the variable cost per bag of feed is $1200. Each bag of feed sells for $2500.

Required:

(a). For a monthly volume of 700 bags, determine the total cost, total revenue and profit

(b). Determine the monthly break-even volume for St Catherine Animal Feeds.

(c). If St Catherine Animal Feeds increases its price per bag of animal feed from 2500 to 2700 what is the new break-even volume.

2. 'The Kingston Daily' prints daily newspapers in the city of Kingston Jamaica. The fixed monthly cost of production is $235 000 and the variable cost per newspaper is $25. Each newspaper sells for $60.

Required:

(a)For a monthly volume of 5000 newspapers, determine the total cost, total revenue and profit

(b). Determine the monthly break-even volume for 'The Kingston Daily'.

(c). Considering the month has 30 days, what is the average number of newspapers that must be sold per day to break even.