Reference no: EM132849819

Questions -

Q1) Last month, a 770 g box of cereal was sold at a grocery store for $3.10. However, this month, the cereal manufacturer launched the same cereal in a 600 g box, which is being sold at $2.50. What is the percent change in the unit price?

Q2) Casey, Chad, and Keith invest $24,000, $10,000, and $16,000, respectively, to build a boat. After the boat was built, Casey decided to sell his share of the investment to Chad and Keith. How much would Chad and Keith have to pay Casey if they want to maintain the same ratio of their investments in the boat?

a. How much would Chad would have to pay?

b. How much would Keith have to pay?

Q3) An item was purchased while on sale, with a net price of $708.70 and discount amount of $240.30. Calculate the following.

a. Calculate the list price of the item.

b. Calculate the discount rate.

Q4) Cornflower Inc. developed a new microphone to be sold to sound equipment stores for $115 each. Their costs for adding this new product to their offerings are:

Rent for additional production space = $500 per month

Insurance costs for the building = $300 per month

Cost for support staff = $5,300 per month

Sales and marketing costs = $1,400 per month

Variable costs associated with each microphone = $14 per microphone

a. Calculate the break-even volume

b. If their profit last month was $78,200, how many microphones did they sell?

Q5) A company manufactures a product that currently sells for $34. The fixed costs are $95,000 per year and the variable costs are $25. The capacity of the production facility is 45,000 units per year.

a. How many units must be produced to attain a net income of $75,000 per year?

b. If sales dropped to 60.00% of the maximum capacity and the selling price reduced by $4.50 per unit, what would be the net income?