PS 1 - Breakeven Analysis

PS 1 - Breakeven Analysis - IE 150 Problem Set 1 Break Even...

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IE 150 Problem Set 1 Break Even Analysis Instructions:  Write/Type/Print your answers on yellow pad or bond paper (NO A4’s). Use a different sheet per  problem.  Use phrases  to describe what you are doing. Do not present it as just a series of equations and  numbers.  Label each step. Ex: “Step 1: Set-up the Total Revenue Equation”, “Step 4: Solve for the NPV”.  Box the final answers.  Use clear formatting: Indent at each step. Show your answers in just 1 column. (The problem set  will be read from top to bottom, and not top bottom diagonal right bottom.) Problem 1:  A company produces circuit boards used to update outdated computer equipment. The fixed cost is  \$42,000 per month, and the variable cost is \$53 per circuit board. The selling price per unit is p = 150- 0.02D. Maximum output of the plant is 4,000 units per month.

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This note was uploaded on 10/05/2011 for the course IE 150 taught by Professor J3patino during the Spring '11 term at University of the Philippines Diliman.

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PS 1 - Breakeven Analysis - IE 150 Problem Set 1 Break Even...

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