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1. Suppose you own a store and sells ladies suits. Your monthly cost of rent, utilities, employees, cleaning, maintenance, etc. adds up to $12,500. You buy suits from a reputed manufacturer for $22 per unit and your cost for transportation, labor for loading/unloading, storing, etc. is estimated as $3 per suit. You are selling suits for $35 per unit. a. Write the cost and revenue functions. b. Plot cost and revenue functions on a graph paper. c. Show and compute the break-even point in terms of quantity and revenue. d. Show the profit and loss regions.
2. What difficulties or challenges do you anticipate as you prepare your journal entries throughout this course? For your first response to this Discussion Forum, give your answer to this question. Then for your other responses this week, read the responses of your fellow students and give them some feedback and some suggestions as to how they might solve or avoid the problems they are anticipating. Hopefully someone will also have some suggestions for you.
A manager at Strateline Manufacturing must choose between two shipping alternatives; two-day freight and five-day freight.
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