bus-139-hw-ch-14-profit-and-breakeven-a.docx

# bus-139-hw-ch-14-profit-and-breakeven-a.docx - bus 139 hw...

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bus 139 hw ch 14 profit and break even 1 of 2 BUS 139 Homework Chapter 14 Profit and Break Even Name __________________________________________ Date _________________ (Name and date required only if submitted in hard copy format.) Scoring Rubric Each item: 2 points Maximum score 20 points To receive credit you must show the intermediate results in how you arrived at your answer. An answer without showing the calculations, even if correct, receives zero credit. You can receive up to 50% partial credit if the answer is incorrect but you have shown significant progress toward the correct answer. 1. A manufacturing unit has fixed costs of \$120,000 per month and variable costs of \$6 per unit. Determine the monthly profit if they manufacture and sell 100,000 units per month at \$10 each. 100,000*( \$10-\$6 ) - \$ 120000 = 100,000 * 4 – 120,000= = \$280,000 2. A manufacturing unit has fixed costs of \$130,000 per month and variable costs of \$6 per unit. Determine the monthly profit if they manufacture and sell 110,000 units per month at \$12 each. 110,000 * ( \$12 - \$6 ) - \$130,000 110, 000 * 6 - \$130,000 = = \$530,000 3. A manufacturing unit has fixed costs of \$140,000 per month and variable costs of \$4 per unit.

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