You are the general manager of a firm with fixed costs of $470,000 per quarter. Your variable costs are $80 per unit and your selling price is $130 per unit.

a) determine your break-even volume ( per quarter). —> round up to next whole number

 

b) Determine the volume at which your firm would lose $116,000 in the quarter. —> round up to the next whole number

 

c) Determine the volume that would yield a quarterly profit of $108,000 —> round up to the next whole number

 

d) The firm currently operates at profit of $108,000 per quarter. It is considering increasing it’s fixed costs by $55,000 as this will decrease variable by $6 per unit. By how much will this increase their profit? —> round up to the nearest cent

9. The premium on an insurance policy is $500 per quarter payable at the start of each quarter. If the policy holder wishes to pay two year's premiums in advance, how much (rounded up to the nearest dollar) should be paid provided that interest is 6% compounding quarterly ? (a) $3,743 (b) $3,800 (c) $3,300 (d) $3,662

1. Mark has to figure out values for his business since he needs profits.

a. The regular selling price of a product is $109. The markup rate on selling price is 18% and the operating expenses are 4% on cost. If, during a sale, the product was discounted by 10%, calculate the profit or loss realized.

b. A company manufactures TVs and sells them for $1,122. The variable cost to manufacture each TV is $660. The fixed costs are $360,000 per month. The production capacity is 20,000 TVs per month. a. What is the break-even number of TVs per month? b. Calculate the break-even number of TVs as a percent to capacity. c. How many TVs must be sold, for the company to have a net income of $50,000?


c. If US$1 = C$1.2145, and if the bank in Canada charges 1.5% commission to buy or sell currencies, how many CAD will you receive if you sell US$4,000?



d. The cost of a pump is $1,200. The overhead expenses are 9% of the cost the required profit is 12% of the selling price. Calculate the selling price of the pump.
e. If you sell products for $40 per unit, which have variable costs of $25 per unit, what fixed costs can ensure that you will break even by selling 1,000 units?

A bike manufacturing company has fixed costs of $165,000 per annum and the variable costs are 48% of sales. If the variable costs increased to 56% of sales, what additional sales must be made to break-even?