# Quantitative Analysis Assignment 1

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Quantitative Analysis Assignment 1
Problem 1-14
Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is \$350. The materials used in one shirt cost \$8, and Gina can sell these for \$15 each. (a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be?
(F) Fixed Cost= \$350.00
(V) Variable Cost= \$8.00
(S) Selling Price= \$15.00
(X) Number of Units Sold= 20

Revenues = (S)(X) = (15)(20) = \$300.00

Total Variable Cost = (V)(X) = (8)(20) = \$160.00

If Gina sells 20 shirts her total revenue will be \$300.00 and her total variable cost will be \$160.00.

(b) How many shirts must Gina sell to break even?  What is the total revenue for this?

(F) Fixed Cost= \$350.00
(V) Variable Cost= \$8.00
(S) Selling Price= \$15.00
(X) Number of Units Sold= ?

BEP=> 0=sX-f-vX X=

X=

X= 50

Total Revenue = (S)(X) = (15)(20) = \$750.00
Gina must sell 50 shirts to break even and she would have total revenue of \$750.00.

Problem 1-17

Katherine D’ Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of \$400 for printing these programs, and the variable cost is \$3. There is also a \$1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for \$5 each, how many would she have to sell in order to break even?
(F) Fixed Cost= \$1,400.00
(V) Variable Cost= \$3.00
(S) Selling Price= \$5.00
(X) Number of Units Sold= ?

BEP=> X=

X=

X= 700
In order to break even selling each program for \$5, Katherine would have to sell 700

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