Reference no: EM133513216
Break-Even Analysis
Questions
1. A booth in a mall sells calendars. The calendars are purchased for $3.55 each and then sold to customers at a price of $9.79. Space is rented for $185.00 per day and wages amount to $317.00 per day. Answer each of the following independent questions.
?(a) If the wages decrease to $259.94 per? day, and other variables remain the? same, how many calendars must be sold to break? even?
?(b) If the calendars are put on sale at 28?% off the regular? price, and all other variables remain the? same, calculate profits if 237 calendars are sold in a? day?
2. Mandir'sbusiness budget included sales of $431,000 and fixed cost of $88,530. If the contribution margin for the business was $168,090?, what are the sales needed to break? even?
3. Woody Woodworks makes and sells cedar planter? boxes, charging $58 for each box. Woody had purchased tools costing $ 1152 to make the planter boxes. Wood and other supplies cost $10 per box if the boxes are unfinished. An additional amount for supplies would be spent if the boxes were painted.
a. To break? even, how many unfinished boxes must he? sell?
b. A special order for 100 boxes at $48 per box has been negotiated. They want the boxes to be painted. To make a profit of $8.00 per? box, how much can be spent on additional painting? supplies?