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To receive credit you must show the intermediate results in how you arrived at your answer. An answer without showing the calculations, even if correct, receives zero credit. You can receive up to 50% partial credit if the answer is incorrect but you have shown significant progress toward the correct answer.

A manufacturing unit has fixed costs of $120,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 100,000 units per month at $10 each.

A manufacturing unit has fixed costs of $130,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 110,000 units per month at $12 each.

A manufacturing unit has fixed costs of $140,000 per month and variable costs of $4 per unit. Determine the monthly profit if they manufacture and sell 120,000 units per month at $12 each.

A manufacturing unit has fixed costs of $170,000 per month and get a markup of $6 on each item sold. Determine the monthly profit if they manufacture and sell 125,000 units per month.

A manufacturing unit has fixed costs of $50,000 per month. Determine the monthly profit if they sell 2,500 items per month of product 1 which has a $9.00 manufacturing cost at $15.00 each, and 4,500 items per month of product 2 which has a $12.00 manufacturing cost at $27.00 each.

A manufacturing unit has fixed costs of $150,000 per month and variable costs of $4 per unit. Determine the break even quantity if the selling price is $9.

Determine the break even quantity for a manufacturer with $250,000 monthly fixed costs and that gets a $9 markup on each item manufactured and sold.

A manufacturing unit has fixed costs of $160,000 per month and variable costs of $5 per unit. Determine the break even quantity if the selling price is $12.

For the previous problem, determine the break even revenue.

For the previous problem, determine the profit at that quantity.

A manufacturing unit has fixed costs of $50,000 per month. Determine the monthly total break even quantity of the two items. Product 1 sells for $15 and costs $9 to manufacture. Product 2 sells for $19 and costs $13 to make.

Solution

A manufacturing unit has fixed costs of $120,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 100,000 units per month at $10 each.

cost = 120,000 + 100,000(6) = 720,000

sell = 10 (100,000) = 1,000,000

Profit =1,000,000 - 720,000 = 280,000

A manufacturing unit has fixed costs of $130,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 110,000 units per month at $12 each.

cost = 130,000 + 110,000(6) = 790,000

sell = 12 (110,000) = 1,320,000

Profit = 1,320,000 - 790,000 = 530,000

A manufacturing unit has fixed costs of $140,000 per month and variable costs of $4 per unit. Determine the monthly profit if they manufacture and sell 120,000 units per month at $12 each.

cost = 140,000 + 120,000(4) = 620,000

sell = 12 (120,000) = 1,440,000

Profit = 1,440,000 - 620,000 = 820,000