1. XYZ sells its product for $275 per unit. It has the following costs:

Factory Labor $13 per unit

Factory Utilities $6.20 per unit

Raw Materials $48.00 per unit

Rent $300,000

All other fixed costs $180,000

1. What is the break-even in units?
2. What is the break-even in dollar sales?
3. How many units do we need to sell to earn a profit of $100,000?

2. Sue borrows $600,000 at 3.85%. The mortgage is for 30 years.

1. What is the monthly payment?
2. How much interest will be paid over the life of the loan?
3. Recalculate the total interest rate if the rate changes from 3.85% to 6.85%. What is the total interest paid over the life of the 6.85% loan?

3. We will make yearly deposits at the beginning of every year of $12,000. We are saving for retirement.

1. How much will be in the account if we retire in 25 years and earn 10%?
2. How much will be in the account if we retire in 35 years and earn 3%?

4. What is the future of $1,000 deposited today:

1. We earn 5% compounded annually for 7 years.
2. We earn 5% compounded semi - annually for 7 years.
3. We earn 5% compounded quarterly for 7 years.

5. We are retiring today!!!!!!! We wish to withdraw $100,000 at the end of every year for 20 years. How much do we need today to fund the annuity if we earn:

1. 3%
2. 10%

6. In 15 years, we want to take a cruise to London. We estimate the cost will be $45,000. How much do we need to invest today if we earn:

1. 4%
2. 4% compounded semi annually