BREAKEVEN PROBLEM

26.An ice cream store sells a pint of ice cream for $4.00 each. The shop incurs a monthly fixed cost of $2,000 which includes salaries and rental. The variable cost per pint of ice cream is $1.50.The company is currently selling 600 pints per month.

A.How many pints per month does the store need to sell to break-even?

B.Using Goal Seek what is the new selling price per pintto achieve a profit of $10,000, if the company continues to sell 600 units

C.Using Goal Seek what is the new quantity that the store must sell toachieve a profit of $10,000, if the price remains at $4

LINEAR PROGRAMMING PROBLEM

27.A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits. Production requirements for the products are shown in the following table.

Product Material 1 (lbs.) Material 2 (lbs.) Labor (hours)

A 3 4 8

B 2 8 4

C 10 none 7

Material 1 costs $14 a pound, material 2 costs $10 a pound, and labor costs $10 per hour. Product A sells for $300 a unit, product B sells for $350 a unit, and product C sells for $350 a unit. Each week there are 600pounds of material 1; 800 pounds of material 2; and 400 hours of labor. Also, there is a weekly demand of 20 units of product .