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Unformatted text preview: iv alent to: Q = FC/(SP – VC).
b. Inc reas ing the fix ed c os t will inc reas e the total c os t for any lev el of produc tion/s ales . That will require a
higher lev el of rev enue to offs et the inc reas ed total c os ts .
c. Dec reas ing the unit v ariable c os t will dec reas e the total c os t for any lev el of produc tion/s ales . As a res ult,
les s rev enue will be required to offs et the total c os ts . http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 5/10 1/29/2014 5. Assignme nt Pr int Vie w awar d: 0.50 out of
0.50 points Problem 7-11
Aldo Redondo driv es his own c ar on c ompany bus ines s . His employ er reimburs es him for s uc h trav el at
the rate of 42 c ents per mile. Aldo es timates that his fix ed c os ts per y ear s uc h as tax es , ins uranc e, and
deprec iation are $2,200. The direc t or v ariable c os ts s uc h as gas , oil, and maintenanc e av erage about
17.0 c ents per mile.
How many miles mus t he driv e to break ev en? (Do not round interm ediate calculations. Roundup
your answer to the next whole...
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- Fall '09