Given:

FC = $9,200/month v = $ .70/unit

R =$ .90/unit

a.Q

BEP

=FC

R - v

=$9,200

$.90 - $.70

= 46,000 units

b.Profit = R x Q - (FC + v x Q)

1.P_61,000 = $.90(61,000) -[$9,200 + $.70(61,000)] = $3,000

2.P_87,000 = $.90(87,000) -[$9,200 + $.70(87,000)] = $8,200

c.

Q =Specified profit + FC

R - v

=$16,000 + 9,200

$.90 / unit - $.70 / unit

= 126,000 units

d.Total Revenue = R x Q, so Q =

Total Revenue =

R

$23,000

$.90 / unit

= 25,555.56 units

Question: e. Plot the total cost and total revenue lines.