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
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