HW 2 Solution - CSA 273 Problem#1 Solutions to Homework#2...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
CSA 273                  Solutions to Homework #2 Problem #1 Let Q = Number of units produced and sold during each time period.     P = Selling price per unit.     F = Fixed cost per period     V = Variable cost per unit per period (a) Break even point = F/(P-V) = $6000/($20-$15) = 1200 units (b) Total Revenue = (2500)*($20) = $50,000 Total cost = F + 2500*V = $6000 + (2500)*($15) = $43,500 Profit = Total Revenue - Total Cost = $50,000-$43,500 = $6,500 (c) Extra profit = 600*($20-$17) = $1800 (d) Extra profit (or loss) of extra 600 units = Profit (or loss) of first 200                                             +Profit (or loss) of last 400                                           = 200*($20-$17) + 400 ($10-$17)                                           = $600 - $2800
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern