Name: Ashutosh Vijay

Assignment on operations management (Break-even)

Problem 9:

Fixed Cost (FC) = $150,000 per month

Variable Cost (VC) = $25 +$45 = $70 per unit
Price (P) = $900 per unit

break-even

= FC/ (P-VC)

break-even

= $150,000/ $830
= 180.72
~181 Units per month

Problem 11:
FC = $2,052 per year
VC = 14.4 cents per mile
Price (P) = 36 cents per mile
Q

break-even

= (2052*100)/ (36-14.4)
= 9500 miles per year

Problem 12:

FC= $20,000
VC for chair = $25 per unit
VC for bar stool = $20 per unit
Price = $50 for each unit (both chair and bar stool)
a. If sell happens in 1:1 ratio of chairs and bar stool sold than for every two
units:
VC= $45
P= $100
Hence Q

break-even

= $20,000/ $55

=364
~ 364 Units of chairs and another 364 units of bar stool

b. If sell happens in 1:4 ratio of chairs and bar stool sold than for every five
units
VC= $105
P = $250
Hence Q

break-even

= $20,000/ $145

= 138
~138 units of chair and 552 units of bar stool

Problem 13:

FC= $10,000 per year

VC= $8 per package
P= $12.50 per package
Q

break-even

= $10,000/$4.50

= 2222.222
~ 2223 units
Revenue generated by selling 2223 units is = 2223*$12.5 = $27787.5