Reference no: EM132531329

Questions -

Q1. Cameron purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $5,000 per month, he needs to sell printouts of 24,000 sheets per month. The printing machine has a capacity of printing 35,600 sheets per month, the variable costs are $0.01 per sheet, and the fixed costs are $1,700 per month.

a. Calculate the selling price of each printout.

b. If they reduce fixed costs by $420 per month, calculate the new break-even volume per month.

c. Calculate the new break-even volume as a percent of capacity.

Q2. Tabitha manufactures a product that sells very well. The capacity of her facility is 216,000 units per year. The fixed costs are $159,000 per year and the variable costs are $12 per unit. The product currently sells for $16.

a. What total revenue is required for a net income of $495,000 per year?

b. If sales were at 70% of the capacity and the variable costs decreased by 25%, what would be the net income per year?

Q3. Peach Company sells a line of toys for $24 each. The variable costs per toy are $6 and the fixed costs per week are $2,142. Calculate the number of toys that need to be sold every week to break even.

Q4. A manufacturer of ovens sells them for $1,350 each. The variable costs are $840 per unit. The manufacturer's factory has annual fixed costs of $175,000. Given the expected sales volume of 3,600 units for this year, what will be this year's net income?

Q5. Meadow Inc. sells shoes for $106 each. The variable costs per shoe are $39 and the fixed costs per week are $5,360.

a. Calculate the number of shoes that need to be sold every week to break even.

b. If 74 shoes were sold, calculate the net income in a week.

Express the answer with a positive sign for profit or negative sign for loss, rounded to the nearest cent

c. How many shoes must be sold to make a profit of $1,600.00 in a week?