Quiz 2 sec 2 sol

# Quiz 2 sec 2 sol - Sol TR = 50 x TC = 100,000 20,000 20 x...

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IE 343 Spring 2010 Name: Section 2, Quiz 2 (last) (first) Closed book, closed notes. No calculators. 1. Sandisk leases a building for \$100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of \$20,000 per year. The machinery is used to produce their MP3 players. Each MP3 player costs \$20 in labor and \$15 in materials and can be sold for \$50. Assume they produce x units per year of the MP3 player. a. Write the annual profit equation for Sandisk.
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Unformatted text preview: Sol: TR = 50 x TC = 100,000 + 20,000 + 20 x + 15 x = 120,000 + 35 x Profit = TR-TC = 50 x – (120,000 + 35 x ) = 15 x – 120,000 ▄ b. What is the breakeven point? (Writing a fraction is fine) Sol: Breakeven point: TR=TC 15 x = 120,000 x = 120,000/15 ▄ 2. You deposit \$10 in a bank account paying 10% simple interest per year. How much would you have at the end of 10 years? Sol: Simple interest : ° ∙ 1 + ± ∙ ²³ = 10 ∙ 1 + 10 ∙ 0.1 ³ = 20 ▄...
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