PS1 - PS1 Problem Set 1 Chapter 1 (pg 20) 14. Gina Fox has...

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Unformatted text preview: PS1 Problem Set 1 Chapter 1 (pg 20) 14. Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each. a. If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be? b. How many shirts must Gina sell to break even? What is the total revenue for this? Equipment $ -350 Fixed Cost Shirt Cost $ - 8 Potential Variable Cost Factor Shirt Value $ 15 Potential Revenue Factor a. 20 * 15 = $300 Total Revenue 20 * 8 = $160 Total Variable Cost b. Units Sold Cost Revenue Profit-350-350 5-390 75-315 10-430 150-280 15-470 225-245 20-510 300-210 25-550 375-175 30-590 450-140 35-630 525-105 40-670 600-70 45-710 675-35 50-750 750 55-790 825 35 60-830 900 70 BEP = 50 units Total Revenue = $750 PS1 19. Farris Billiard Supply sells all types of billiard equipment, and is considering manufacturing their own 19....
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This note was uploaded on 05/03/2011 for the course BUSN 603 taught by Professor Wallace during the Spring '11 term at American Public University.

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PS1 - PS1 Problem Set 1 Chapter 1 (pg 20) 14. Gina Fox has...

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