Show work for each problem l The following table shows the a

Show work for each problem

l. The following table shows the average profit made by a certain used car company on sales of different types of vehicles during the last two years. Profit made Type Car Price Under SSK S300 S250 II Between $5K and $7.5K S200 III Between $7.5K and $10K S350 IV Between $10K and $12.5K $400 Over $12.5K If in a particular week, the company sold 2,0, 3, 1, and 4 of vehicle types I, II, III, IV and V respectively, determine the total profit that you would expect to be made for that week. (20 points) 2. The following table shows the annual cost and production data for a company making brass deadbolt locks. Material and Parts Cost S1,500,000 Labor Cost S2,000,000 Overhead Cost S2,500,000 Annual Production Quantity 500,000 units If the selling price is determined by adding a 40% mark-up on the total production cost, what should be the selling price per unit? Remember to show your solution procedure A) S16.80 B) S9.80 C) S12.00 D) S14.20 (20 points)

Solution

(1)

Total profit = 2 x $300 + 0 + 3 x $200 + 1 x $350 + 4 x $400 = $(600 + 600 + 350 + 1600) = $3,150

(2)

Total production cost = Material + Labor + Overhead

= $(1,500,000 + 2,000,000 + 2,500,000) = $6,000,000

Markup at 40% = $6,000,000 x 40% = $2,400,000

Revenue = Cost + Markup = $(6,000,000 + 2,400,000) = $8,400,000

Selling price per unit = $8,400,000 / 500,000 = $16.80

Correct option (A)