solutions to homework 1

# solutions to homework 1 - Problem#1-1 Fixed cost = Variable...

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Problem #1-1 Fixed cost = 8,000 Variable cost = 65 Price = 180 a) Volume = 300 Total Cost = 27,500 (Fixed cost + volume * variable cost) Total revenue = 54,000 (volume * price) Profit = 26,500 (Total revenue - Total cost) b) volume = 69.57 tables (Fixed cost/ (price- variable cost))

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Problem #1-3 Fixed cost = 21,000 Variable cost = 0.45 Price = 1.30 a) Volume = 18,000 Total cost = 29,100 (Fixed Cost + volume * variable cost) Total revenue = 23,400 (volume * price) Loss = (5,700) (Total revenue - Total cost) b) Volume = 24,705.88 denim (Fixed cost / (price - variable cost))
Problem #1-9 Fixed cost = 21,000 Variable cost = 0.45 Price = 1.30 Volume= 25,000 Break- Even Volume = 24705.88 (Fixed cost/(price - variable cost)) Percentage = 0.9882 (Break- Even Volume/ Volume) The percentage is approximate 98.82%.

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Problem #1-19 Regular Plan: Fixed Cost = 55 per month Variable cost (x) = .33 per minute for anything over 1000 minutes monthly Equation: Total cost= 55+.33x Executive Plan: Fixed Cost =
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solutions to homework 1 - Problem#1-1 Fixed cost = Variable...

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