Reference no: EM133014132
1. A smart phone manufacturing company in Asia has monthly fixed costs of $20,000,000, and the variable cost per handset is $35. The phones sell for $400.
a. For a monthly volume of 3,000,000 units, determine the total cost, total revenue, and profit.
b. Determine the monthly break-even volume for the smart phone manufacturer.
2. A central heating installation company has a fixed annual cost of $120,000. The variable costs are $1,000 per unit. The company charges $3,500 per unit installed.
a. For an annual volume of 57 units, determine the total cost, total revenue, and profit.
b. Determine the annual break-even volume for this company.
3. A paper mill has a monthly fixed cost of $253,000 and the variable cost per 90 folio is $0.27. The revenue per folio sold is $2.45.
a. For a monthly volume of 2,566 units, determine the total cost, total revenue, and profit.
b. Determine the monthly break-even volume for this company.
4. A luxury watch maker in Switzerland has monthly costs of $125,000 and variable costs of $4,700 per watch. The watch maker sells each for $22,400. Determine the monthly break-even volume for the company.