EKA manufacturing company produces part #2206 for the aerospace industry. Each unit of part #2206 is sold for $15. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000.

1) If next months demand is 200, how much should the company charge to break even?

2) At the current price demand is 400. If they lower the price to $12, demand will increase to 500. Should they lower the price?

3) Based on the information above, the method to solve the model is known as

A) Decision Science

B) All are correct

C) Quantitative methods

D) Management Science

4) The product has 4 screws which cost $15 per box. Should these be included in the variable cost?

A) True

B) False

5) How many units need to be sold in a month to break even?

A) 200

B) 166.67

C) 183.83

D) 500

E) 250

6) What are total costs at the break even point?

A) 3750

B) 3000

C) 0

D) 750

E) 250

7)What are fixed costs at the break even point?

A) 3750

B) 750

C) 0

D) 250

E) 3000

8) If next months demand is 200, how much should fix costs be?

A) 2206

B) -600

C) 3600

D) 600

E) 2806

F) 3000

9) If next months demand is 200, how much should the company charge for each unit of part #2206 to make $5000?

A) 72

B) 18

C) 50

D) 39.03

E) 43