ch03 - Chapter 3 Answers to Problems 2. Breakeven Quantity...

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Chapter 3 Answers to Problems 2. Breakeven Quantity = Fixed Cost / (Selling Price-Variable Cost) = 120,000/(55-35) = 6,000 patients 4. a. Breakeven Quantity = Fixed Cost / (Selling Price-Variable Cost = 500,000/(350-200) = 3333.3, so 3334 printers exceeds the breakeven b. The operations considerations required for this decision are many. Among them are product design, process selection, supply chain management, facility location, employees, inventory management, and scheduling. 6. Breakeven Quantity = Fixed Cost / (Selling Price-Variable Cost) rearranges to: Selling price = (Fixed Cost/Quantity) + Variable Cost = 25,000/12,000 + 35 = $37.083 Therefore, the spa needs to charge at least $37.09 to avoid losing money on the spa.
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8. a. Breakeven 0 100000 200000 2,000 4,000 6,000 8,000 Quantity Total Dollars Total Cost Total Revenue Breakeven Quantity = Fixed Cost / (Selling Price-Variable Cost) = 70,000/(20-8) = 5,833.3 Fine does better than breakeven at 5,834 units b. contribution to Profit = Total Revenue-Total Cost = SP(Q)-[FC+VC(Q)]
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This note was uploaded on 06/12/2011 for the course MNGT 368 taught by Professor Curthurds during the Spring '08 term at Nicholls State.

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ch03 - Chapter 3 Answers to Problems 2. Breakeven Quantity...

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