Reference no: EM133184453

Question 1:?A 37.5% discount on a video recorder amounts to $913.50. What is the list price?

Question 2: Find the rate of discount for ski gloves listed at $36.80 whose net price is $23.92.

Question 3: A department store lists a product for $200 less 20%. To improve the sales, the net price is reduced to $120. What additional rate of discount is given by the store?

Question 4: A power drill listed at $180.00 less 30%, 12.5%, 5%, and 5%. What is the net price?

Question 5: A manufacturer sells skidoos to dealers at a list price of $2100.00 less 40%, 10% and, 5%.

Determine the amount of discount.

PAET : 2

1) A manufacturer plans to introduce a new type of shirt based on the following information.

The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units.

a) Calculate the break-even point

?(i) in units

?(ii) in dollars

?(iii) as a percent of capacity

b) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00

c) Calculate the break-even point (in dollars) if the selling price is increased to $78.00.

2) Priest and Sons, a local manufacturer of a product that sells for $13.50 per unit. Variable cost per unit is $7.85 and fixed cost per period is $1 220. Capacity per period is 1100 units.

Perform a break-even analysis showing

a) an algebraic statement of

?(i) the revenue function;

?(ii) the cost function;

?(iii) calculate the break-even point in units.

3) Trevor, the new owner of the vehicle accessory shop is considering buying sets of winter tires for $299 per set and selling them at $520 each. Fixed costs related to this operation amount to $3 250 per month. It is expected that 18 sets per month could be sold. How much profit will Trevor make each month?

4) Victor plans to set up an on-line business selling software applications that he develops and supports. He believes that a price of $130 for his product including the technical support would be competitive. His monthly fixed expenses amount to $850. Victor would hire some college students to provide the technical support of the application paying them for 3 hours at $15 per hour for each client.

a) How many clients does Victor need to acquire to break even?

b) If he wants to achieve a target profit of $500 monthly, how many clients does he need?

5) A company has variable costs that are 4/7 the value of their sales revenues. Total net income for the most recent period was a profit of $53 770 and sales were $420 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $6 400. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?