Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jaspreet, a carpenter, has the capacity to produce and sell 89 tables every year at $3,000 each. The variable costs are $1,000 per table and

Jaspreet, a carpenter, has the capacity to produce and sell 89 tables every year at $3,000 each. The variable costs are $1,000 per table and fixed costs are $20,000 per year.

a. How many tables should he produce and sell to have a net income of $92,000 per year?

Round up to the next whole number

b. What is her net income at maximum capacity?

Round to the nearest cent

c. Calculate the number of tables he needs to sell to have a net income of $87,000 per year if the selling price of the tables is reduced by 17% and variable costs increased by 10%.

Round up to the next whole number

image text in transcribed

Jaspreet, a carpenter, has the capacity to produce and sell 89 tables every year at $3,000 each. The variable costs are $1,000 per table and fixed costs are $20,000 per year. a. How many tables should he produce and sell to have a net income of $92,000 per year? Round up to the next whole number b. What is her net income at maximum capacity? Round to the nearest cent c. Calculate the number of tables he needs to sell to have a net income of $87,000 per year if the selling price of the tables is reduced by 17% and variable costs increased by 10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elements Of Structured Finance

Authors: Ann Rutledge, Sylvain Raynes

1st Edition

0195179986, 978-0195179989

More Books

Students also viewed these Finance questions