Ponderosa Development Corp.

Fixed Cost 40000 Fixed Cost 40000

Variable Cost Per Unit 105000 Variable Cost Per Unit 105000
Selling Price Per Unit 115000 Selling Price Per Unit 115000

Sales Volume 4 Sales Volume 12

Total Cost 460000 Total Cost 1300000
Total Revenue 460000 Total Revenue 1380000
Total Profit/Loss 0 Total Profit/Loss 80000
Nowlin Plastics Example

Fixed Cost 3000

Variable Cost Per Unit 2
Selling Price Per Unit 5

Proposed Production Volume 1000

Total Cost 5000

Total Revenue 5000

Total Profit/Loss 0
Ques 3

Fixed Cost 1000

Variable Cost Per Unit 30
Selling Price Per Unit 40

No. of Pairs 100

Total Cost 4000

Total Revenue 4000

Total Profit/Loss 0
Ques 4

Part a Part b
Fixed Cost 80000 Fixed Cost 80000
Variable Cost Per Unit 3 Variable Cost Per Unit 3
Selling Price Per Unit 20 Selling Price Per Unit 20

No. of Copies 4705.882353 No. of Copies 4000

Total Cost 94117.64706 Total Cost 92000

Total Revenue 94117.64706 Total Revenue 80000

Total Profit/Loss 0 Total Profit/Loss -12000

No. of Copies 4706

Part c Part d
Fixed Cost 80000 Fixed Cost 80000
Variable Cost Per Unit 3 Variable Cost Per Unit 3
Selling Price Per Unit 23 Selling Price Per Unit 25.95

No. of Copies 4000 No. of Copies 4000

Total Cost 92000 Total Cost 92000

Total Revenue 92000 Total Revenue 103800

Total Profit/Loss 0 Total Profit/Loss 11800