Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindsey purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,500 per month, she needs

Lindsey purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,500 per month, she needs to sell printouts of 28,000 sheets per month. The printing machine has a capacity of printing 36,800 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,100 per month.

a. Calculate the selling price of each printout. Round to the nearest cent

b. If they reduce fixed costs by $330 per month, calculate the new break-even volume per month. Round up to the next whole number

c. Calculate the new break-even volume as a percent of capacity. Round to two decimal places

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

Step: 3

blur-text-image

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

International Finance

Authors: Keith Pilbeam

4th Edition

0230362893, 978-0230362895

More Books

Students also viewed these Finance questions