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Assuming you are the person in-charge on pricing in a factory producing frozen hamburgers. The fixed costs are $2,000,000, variable costs are $ .75 per hamburger. You are selling your product to retailers for $1.25. You sell the hamburger in box of 24.
Problem 1: How many boxes of hamburgers do you sell to break even?
Problem 2: How much in dollars do you sell to break even?
Problem 3: How many boxes of hamburgers do you sell to break even plus a profit of $300,000?
Problem 4: Assume a retailer (local supermarket) buys your product for $ .89. His business requires all products are with a 35 percent markup on cost. Calculate his selling price?
Problem 5: Following on Problem 4, how much must you sell in dollars to break even?
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Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 18,300 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable co..
Modify the Excel Solver model solverRM2.xls and the AMPL model to account for the new situation and determine the optimum solution. Compare additional effort associated with each modification.
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