Dimaano, Lois Danielle P.

11313145
Number

MANSCIE K35
15 September 2014
Solution

Answer

[Given: Fixed cost = $350 ; Selling price = $15 ; Materials used = $8 ;

Number of quantity sold = 20 shirts]
1-14A

1-14B

1-15

Total revenue = Number of quantity sold x Selling price

Total revenue:

= 20 shirts x $15

$300

Total variable cost = Number of quantity sold x Materials used

Total variable cost:

= 20 shirts x $8

$160

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $350 / $15 - $8

50 shirts

Total revenue = Break-even units x Selling price

Total revenue:

= 50 shirts x $15
[Given: Fixed cost = $150 ; Selling price = $50 ; Variable cost = $20]

$750

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $150 / $50 - $20

5 units

[Given: Fixed cost = $150 ; Selling price = $50 ; Variable cost = $15]

1-16

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $150 / $50 - $15

4/4.29 units

[Given: Fixed cost = $400 + $1000 ; Selling price = $5; Variable cost = $3]

1-17

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $1400 / $5 - $3

700 programs

[Given: Fixed cost = $1400 ; Variable cost = $3 ; Break-even units = 500]

1-18

Break-even units = Fixed cost / Price Variable cost

Selling price:

500 = $1400 / x - $3

$5.80

500 = $1400 / $5.8 - $3

[Given: Fixed cost = $2400 ; Selling price = $40 ; Variable cost = $25]
1-19

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $2400 / $40 - $25

160 pool cues

Total revenue = Break-even units x Selling price

Total revenue:

= 160 pool cues x $40

$6400

[Given: Fixed cost = $2400 ; Selling price = $50 ; Variable cost = $25]
1-20
Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $2400 / $50 - $25

96 pool cues

Total revenue = Break-even units x Selling price

Total revenue:

= 96 x $50

$4800

[Given: Fixed cost = $2400 ; Variable cost = $25 ; Break-even units = 120]
1-21

Break-even units = Fixed cost / Price Variable cost

Selling price:

120 = $2400 / x - $25

$45

120 = $2400 / $45 - $25

120 = $2400 / 20
120 = 120
[Given: Fixed cost = $1000 + $10000 ; Selling price = $250 ; Variable cost
= $60]
1-22

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $11000 / $250 - $60

58 attendees

[Given: Fixed cost = $300 + $75 ; Selling price = $20 ; Variable cost = $5]
1-23A

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $375 / $20 - $5

25 students

[Given: Fixed cost = $200 + 75 ; Selling price = $20 ; Variable cost = $5]
1-23B

Break-even units = Fixed cost / Price Variable cost

Break-even units:

= $275 / $20 - $5

19 students
Choosing the second
alternative will decrease
the break-even units by 7
students