Reference no: EM132711716

Problem 1 - Susan is considering the expansion of her picture-framing camera business to include the printing of oversize pictures from CDs. She would need to lease equipment, at a cost of $210 per month. To process the pictures, she estimates that she would have supplies expenses of $4 per picture. Susan estimates that she can sell 40 pictures per month.

(a) What price should she charge to break even?

(b) Compute the break-even point in sales dollars.

Problem 2 - The operating budget for a certain company shows a net income of $301,350. To achieve this, the company is targeting sales of $749,000, variable costs of $441,910, and fixed costs of $5,740. Compute the break-even point in sales dollars.

Problem 3 - A booth in a mall sells calendars. The calendars are purchased for $4.92 each and then sold to customers at a price of $11.89. Space is rented for $167.00 per day and wages amount to $286.00 per day. Answer each of the following independent questions.

(a) If the wages decrease to $237.38 per day, and other variables remain the same, how many calendars must be sold to break even?

(b) If the calendars are put on sale at 31% off the regular price, and all other variables remain the same, calculate profits if 222 calendars are sold in a day?