Question
Harrow Seed and Fertilizer has compiled the following estimates for operations. Sales $189,000.00 Fixed Costs $45,600.00 Total Variable Costs $43,600.00 Net Income $99,800.00 Capacity is
Harrow Seed and Fertilizer has compiled the following estimates for operations.
Sales $189,000.00
Fixed Costs $45,600.00
Total Variable Costs $43,600.00
Net Income $99,800.00
Capacity is a sales volume of $211,500.00
(Do not include the $ signs in your answers.)
(Do not include the % signs in your answers.)
(a) Find the equation for the revenue function.
(The format of this equation must be TR = X)
Answer
(b) Find the Per Dollar Factor.
(Do not Round.)
Answer
(c) Find the equation for the cost function.
(The format of this equation must be TC = 50000 + 0.300000000X)
Answer
(Moodle is being a total jerk here: Notice that there are 9 decimals before the X, not 10, and not 8, but exactly 9.)
(d) Compute the contribution margin as a decimal value.
(Do not Round.)
Answer
(e) Compute the contribution rate.
(As a percentage correct to 2 decimal places.)
Answer
(f) Compute the break-even point in sales dollars.
Answer
(g) Compute the break-even point as a percent of capacity.
(As a percentage correct to 2 decimal places.)
Answer
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