Hi there,
Please help with these problems. I’ve been at them continuously and I keep getting different answers which is making me more and more frustrated. It’s been a long time since I done this and my line of work does not require this form of mathematics. I’m normally good in math but I am drove completely crazy right now lol
1. A local car dealership has revenues of $587,000, variable costs of $299,370 and fixed costs of $109,270. The dealership has revenue capacity of $888,000. Compute the break-even point as a percent of capacity.
2. Rubber and Steel Company is planning to manufacture a new product. The variable manufacturing costs will be $60 per unit and the fixed costs are estimated to be $5671. The selling price of the product is to be $134 per unit. Variable selling expense is expected to be $21 per unit. Determine the break-even point in sales dollars.
3. Joy’s business had a budget of $155,000 in sales and $86,730 in total variable costs. What is the most her fixed costs could be for the business to break even?
4. A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. Calculate the break-even point in units.
5. Last year a printing company had total sales of $37,500. The total of its variable costs was $15,000, and fixed costs were $18,000. Capacity is at sales maximum of $50,000. Calculate the break-even point in dollars of sales.
6. Trevor, the new owner of the vehicle accessory shop, is considering buying sets of winter tires for $299 per set and selling them at $520 each. Fixed costs related to this operation amount to $3,250 per month. It is expected that 18 sets per month could be sold. How much profit will Trevor make each month?
7. A pen manufacturer makes luxury pens. The pen case costs $7.26 each, the ink holder costs $1.26 each, the spring costs $.07 each, and the velvet pen case costs $0.91 each. The plant has general and administrative costs of $55,000 and fixed selling expenses of $37,500. The pens sell for $39.95 each. Plant capacity is 4,000 pens per period. At what percentage of capacity is the break-even point?
8. Excel Hardware is introducing a new product on a new product line with capacity of 800 units per week at a production cost of $50 per unit. Fixed costs are $22,400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plans to market the new product at $110 per unit. What would be the weekly net income at 90% of the capacity?
9. Sunbeam wants to sell microwaves at a unit contribution margin of $42 and a unit contribution rate of 60%. What should be the break-even volume if the fixed cost of production is kept below $10,000.
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