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Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are $600,000, its variable costs are $500 per card, and it must sell 15,000 cards to break even the first year. What is the minimum price per unit it should charge?
As part of its benefits package, a company offers vision insurance to employees. The monthly premium cost per employee is $43. If the employees pay 75% of the premium, how much is the total annual premium paid by an employee for the vision insurance?
Mindy is a real estate agent who earns 5.5% commission on each sale she makes. Last month she sold two homes for $159,000 and $213,000. How much did Mindy make in commissions for the month?
Irving works for Sam's Food Market. He is paid weekly on the basis of a 40-hour work week at the rate of $9.50 an hour with time-and-a-half for overtime. During one week he worked 49 1/2 hours. What was the amount of his total earnings for the week?
Linda sells vacuums part time. She is paid a monthly commission only. She receives 15% of her first $1,500 in sales and 20% of the remainder. Last month she sold $2,233 worth of vacuums. How much commission did she earn last month?
12. If the total cost operations (Y) is related to sale (X) , by the equation Y = 0.6x+10,000 find
(a) Fixed cost
(b) Total cost on sales of birr 50,000
(c) The breakeven point
(d) Net profit before taxes on sales of birr 60, 000.
11. A manufacturer has a fixed cost of birr 120,000and a variable cost of birr 20 per unit made and sold. Selling
price is birr 50 per unit.
(a) Write revenue, cost and profit equations using C for cost, Q for number of units and P for profit.
(b) Find the breakeven quantity
(c) Find the breakeven Birr volume of sales (revenue)
(d) Compute profit if 10,000 units are made and sold, 100 units are made and sold.
(e) Construct the breakeven chart. Label the cost, revenue and the fixed Cost line and the breakeven point.
9. ABC merchandising firm plans to work on a margin of 46% of retails and it incurs other variable cost of birr
0.16per birr of sales. A fixed cost equals to birr 25,000.
(a) Find the equation relating total cost to sales?
(b) Find the breakeven point?
(c) What would be net profit before taxes if sales are birr 1000,000?
(d) If the firm wants to make profit before taxes of birr20, 000, what should be the revenue level?
8. A small home business set up with an investment of $ 10,000 for equipment. The business manufactures a
product at a cost of br. 0.64 per unit. If the product sales for Br. 1.20 per unit how many units must be sold
before the business breaks even?
7. In its first year, “Abol Buna Co” had the following experience Sales = 25,000 units
Selling price = br.100 TVC = br.1, 500,000 TFC = br.350, 000. Required:
(a) Develop Revenue, cost & profit functions for the co. in terms of quantity.
(b) Find the Breakeven point in terms of quantity
(c) Convert the cost equation in terms of quantity in to a cost equation in terms of revenue
(d) Find the Breakeven revenue
(e) If profit had been br. 500,000 what would have been the sales volume (revenue) &
the quantity of sales
(f) What would have been the profit if sales are br. 2,000,000?
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#340153 on Dec 2023