Q1/Kenneth purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $6,000 per month, he needs to sell printouts of 29,000 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 $1,700 per month.

a. Calculate the selling price of each printout.

b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month.

c. Calculate the new break-even volume as a percent of capacity.

Q2/Tabitha manufactures a product that sells very well. The capacity of her facility is 243,000 units per year. The fixed costs are $199,000 per year and the variable costs are $11 per unit. The product currently sells for $18.

a. What total revenue is required for a net income of $407,000 per year?

b. If sales were at 75% of the capacity and the variable costs decreased by 25%, what would be the net income per year?

Q3/Meadow Inc. sells shoes for $126 each. The variable costs per shoe are $37 and the fixed costs per week are $5,518.

a.How many shoes must be sold to make a profit of $1,426.00 in a week?