Question
1. The selling price per unit of a product is $35, the fixed costs per month are $12,600, and the total variable costs per month
1. The selling price per unit of a product is $35, the fixed costs per month are $12,600, and the total variable costs per month are $12,200 at the break-even point. What is the number of units required to break even?
2. Digital Displays Inc. makes computer monitors and sells them for $315 each. To break even, it needs to sell 525 monitors per month. If the fixed costs are $8,600 per month, what is the variable costs per monitor?
3. Bobble Roofing charges a flat rate of $1,500 for insulating roofs of townhouses. Monthly administrative costs of the company are $3,600, cost of supplies is $140 per job, and wages are $290 per job. What was the company's profit or loss in a month during which it insulated 20 roofs?
4. A small manufacturing company that produces and sells snow boots has variable costs of $65 per pair of boots. The fixed costs are $2,200 per month and it has to sell 85 pairs of boots to break even.
a. What is the total revenue at the break-even point?
b. What is the selling price per pair of boots?
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