Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm manufactures a product that sells for $22 per unit. Variable cost per unit is $9 and fixed cost per period is $1820. Capacity

image text in transcribed

A firm manufactures a product that sells for $22 per unit. Variable cost per unit is $9 and fixed cost per period is $1820. Capacity per period is 1200 units. (a) Develop an algebraic statement for the revenue function and the cost function. (b) Determine the number of units required to be sold to break even. (c) Compute the break-even point as a percent of capacity. (d) Compute the break-even point in sales dollars. (a) The revenue function is TR= (Type an expression using x as the variable. Do not include the $ symbol in your answer.) The cost function is TC = (Type an expression using x as the variable. Do not include the $ symbol in your answer.) units. (b) The number of units required to be sold to break even is (Round up to the nearest whole number.) %. (c) The break-even point as a percent of capacity is (Round to two decimal places as needed.) (d) The break-even point in sales dollars is $ (Round to the nearest cent as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance Theory And Practice

Authors: Terrence M. Clauretie, G. Stacy Sirmans

4th Edition

032414377X, 978-0324143775

More Books

Students also viewed these Finance questions

Question

Explain why companies depreciate their buildings and equipment.

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago