Question
1.For a table manufacturing company, selling price for a table is $200.00 per Unit, Variable cost is $125.00 per Unit, rent is $2,797.00 per month
1.For a table manufacturing company, selling price for a table is $200.00 per Unit, Variable cost is $125.00 per Unit, rent is $2,797.00 per month and insurance is $1,396.00 per month. How much is the company contributing to covering their fixed costs or generating profits?
2.
You run a school in Florida. Fixed monthly cost is $5,378.00 for rent and utilities, $5,514.00 is spent in salaries and $1,265.00 in insurance. Also every student adds up to $100.00 per month in stationary, food etc. You charge $674.00 per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,911.00, salaries to $6,326.00 and insurance to $2,465.00 per month. Variable cost per student will increase up to $185.00 per month. However you can charge $1,029.00 per student. At what point will you be indifferent between your current mode of operation and the new option?
3.A restaurant sells pizza at a rate of $10.58/slice. Expenses for the restaurant include raw material for pizza at $5.58 per slice, $167.00 as monthly rental and $65.00 monthly as insurance. How many slices should the restaurant sell in a month to break even?
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