1. The Sherston Brick Company manufactures a standard stone block for the building industry. The production capacity for the year is 100,000 standard blocks. The selling price per block is $1.60, variable costs are $0.60 per brick and fixed costs are $60,000 per annum. Calculate the break-even point and the total revenue if the company breaks even. Please show all calculations. (5 points)
2. A company has fixed costs of $300,000 and produces one product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units. Find the break-even point. Calculate the profits if the company produced and sold 20,000 and 15,000 units respectively. Please show all calculations. (5 points)