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Q1) Willow Furniture Company produces tables. Fixed monthly cost of production is= $8,000, and variable cost per table is= $65. Tables sell for $180 apiece.
a) For monthly volume of 300 tables, find out total cost, total revenue, and profit.
b) Find out the monthly break-even volume for Willow Furniture Company.
Q2) Owner of Western Clothing Company has found out that company must sell 670 pairs of denim jeans each month to break even (i.e., to reach point where total revenue equals total cost). Company's marketing department has estimated that monthly demand is normally distributed, with mean of 805 pairs of jeans and standard deviation of 207 pairs. Determine the probability that company will make a profit each month?
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