Question
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started