Question
1.We manufacture and sell widgets and the price we charge for each widget is $21.To manufacture 20 widgets, our fixed costs total $1200, our total
1.We manufacture and sell widgets and the price we charge for each widget is $21.To manufacture 20 widgets, our fixed costs total $1200, our total variable cost total $300.
a)How many widgets must be sold to break even?b) What is the breakeven revenue amount?
2. We manufacture and sell widgets and the price we charge for each widget is $21.To manufacture 20 widgets, our fixed costs total $1200, our total variable cost total $300.
a) How many widgets must be sold to earn 200 profit?
3.Smitty's Smoothies has fixed costs of $1,600 per month. The only variable costs Smitty incurs are for the ingredients and labor needed to produce smoothies. These costs are $1.50 per drink. Smitty sells his delicious concoctions for $3.50 each.
a)How many smoothies must be sold to break even?b)What is the breakeven revenue amount?
4. Smitty's Smoothies are a popular item priced at $3.50 per smoothie.Variable costs are $1.50 per smoothie.With fixed costs at $20,000 per year, Smitty will realize a $6,000 profit if:
5.Smitty's Smoothies are a popular item priced at $3.50 per smoothie. Last year he sold 30,000 and had total revenue of$105,000.The total variable costs were $60,000. Fixed costs at $20,000 per year.
a) How many smoothies must be sold to break even?b)What is the breakeven revenue amount?
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