Complete the following problems and submit the results in either a Microsoft Word document or a Microsoft Excel spreadsheet. If you choose to use an Excel spreadsheet, place each problem on a separate sheet and label the tab with problem number. Save your document with a descriptive file name, including the assignment and your name.

These problems are similar to problems in the text, but have been altered by the course monitor.

1-1 Jay White sells handmade decorations. He had to purchase specialized equipment for $4000 and buy a retail license for $1000. It cost Jay $125 in time and materials to make each item. He expects to sell each decoration for $150.

How many units will he need to sell to breakeven?

Jay has been told that the market for his products may not be as large as he originally anticipated. What price would he have to charge to make the Breakeven Point 100 units?

This new price represents what percentage change in the price?

1-2. Farris Billiard Supply sells all types of billiard equipment and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager, is currently investigating the production of a specialize pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $50 and the fixed cost that must be covered is $2400 per week.

With an expected selling price of $80 each, how many pool cues must be sold to breakeven?

What is the total revenue at that point?

What would the profit (or loss) be if they sold 100 per week?

What would the selling price have to be to make the BEP 60?

1-3 Holdtight a leading manufacturer of quality nails, produces 1-, 2-, 3-, 4-, and 5-inch nails for all kinds of applications. In the production process, if there is an overrun or the nails are slightly defective, they are placed in a common bin. Yesterday, 736 of the 1-inch nails, 223 of the 2-inch nails, 89 of the 3-inch nails, 455 of the 4-inch nails, and 377 of the 5-inch nails were placed in the bin.

What is the probability of reaching into the bin and getting a 5-inch nail?

What is the probability of getting a 3-inch nail?

If a particular application requires a nail that is 3 inches or longer, what is the probability of getting a nail that will satisfy the requirements of the application?