Question
Cost- Volume- Profit- Analysis and Break-Even 1. A firm manufactures a product that sells for $1515 per unit. Variable cost per unit is $5 and
Cost- Volume- Profit- Analysis and Break-Even
1. A firm manufactures a product that sells for $1515 per unit. Variable cost per unit is $5 and fixed cost per period is $1500. Capacity per period is 1200 units.
The revenue function is TR = 15*x
(a)The cost function is TC = ____
(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.
2. A firm manufactures a product that sells for $1212 per unit. Variable cost per unit is $77 and fixed cost per period is $1900. Capacity per period is 700 units. Perform a break-even analysis showing a detailed break-even chart.
Revenue function, TR= 12x
Find the cost function, TC.
TC equals = ________ (use x as the variable. Do not include the $ symbol in your answer.)
3.Sebastian and a group of friends have set up a weekend baseball tournament. The tournament will be held on Saturday and Sunday. They can rent a baseball field for a daily charge of $82 and equipment for $56 per day. If they hire an independent umpire, they would need to pay $118 for the day. They would arrange to have caps made for each player at a cost of $5 each. If Sebastian can get 64 people to participate in the tournament, what price should be charged for admission to recover costs?
The price for admission to the tournament should be $___.
(Round the final answer to the nearest cent as needed)
4. Melinda and Morris sell soft drinks at ball games. They charge $1.75 for each bottle. The cost to purchase each bottle of soft drink is $0.65. They estimate that they can sell at least 218 bottles at each game. To break even, what is the most that they can pay in fixed costs?
The most that can be paid for fixed costs is $___ . (round to the nearest cent)
| 5. The data to the right pertain to the operating budget of a manufacturing company. Compute the following. Assuming the contribution margin is $1,292,600 (a) what is the contribution rate (b) what is the break-even point in sales dollars | Step by Step SolutionThere are 3 Steps involved in it Step: 1
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Managerial AccountingAuthors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac 10th Edition B010IKDQZM |
