How much profit or loss will the company make

Reference no: EM132377352

Assignment Task

You must show all your work.

1. The Stanley Company is coming up with a new cordless travel shaver just before the Christmas holidays. It hopes to sell 15,000 of these shavers in the month of December alone. The manufacturing variable cost is $3 and the Fixed costs $100,000.

a. If the shavers sell for $11 each, how many must be produced to break-even? (Hint: Set R(X) - C(X) = 0 and solve for X.

b. If the company produces and sells 15,000 units, how much profit or loss will the company make?

2. Both Jenny and Masur are salespeople for Athletic Shoes. Jenny gets paid $8 per hour plus 4% commission on the sales. Masur gets paid $10 per hour plus 8% commission on the sales in excess of $1,000. If they work 8-hour days, for what sales amount would they both earn the same daily amounts?

3. A car rental company offers two plans. Plan I charges $12 a day and 12 cents a mile, while Plan II charges $30 a day but no charge for miles. If you were to drive 300 miles in a day, which plan is better? For what mileage are both rates the same?

4. Whackemhard Sports is planning to introduce a new line of tennis rackets. The Fixed Cost for the new line is $35,000 and the variable cost of producing each racket is $70. If the racket sells for $90, how much profit will the company make if it produces and sells 2,500 units

5. A company's revenue and cost in dollars are given by R = 225x and C = 75x + 6000, where x is the number of items. Find the number of items that must be produced to break-even.

Reference no: EM132377352

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