BUS 245-Break Even

To receive credit you must show the intermediate results in how you arrived at your answer. An answer without showing the calculations, even if correct, receives zero credit.

1. A manufacturing plant has fixed costs of $20,000 per month. Determine the monthly break even quantity if the margin on each item is $7.50.

2. A manufacturing unit has fixed costs of $150,000 per month and variable costs of $4 per unit. Determine the break even quantity if the selling price is $9.

3. Determine the break even quantity for a manufacturer with $30,000 monthly fixed costs, $15 variable cost, and that gets a markup of 30% of the variable cost on each item manufactured and sold.

4. For the previous problem, determine the break even revenue. (SP = VC + margin)

5. For the previous problem, determine the profit at that quantity.