3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold. Selling price is $50 per unit. a) Find the revenue, cost and profit functions using q for number of units. b) Compute profit if 15,000 units are made and sold. c) Compute profit if 2,000 units are made and sold. d) Find the break-even quantity. e) Find the break-even dollar volume of sales.
3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold. Selling price is $50 per unit. a) Find the revenue, cost and profit functions using q for number of units. b) Compute profit if 15,000 units are made and sold. c) Compute profit if 2,000 units are made and sold. d) Find the break-even quantity. e) Find the break-even dollar volume of sales.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold.
Selling price is $50 per unit.
a) Find the revenue, cost and profit functions using q for number of units.
b) Compute profit if 15,000 units are made and sold.
c) Compute profit if 2,000 units are made and sold.
d) Find the break-even quantity.
e) Find the break-even dollar volume of sales.
f) Construct the break-even chart](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff0ece137-f261-4fd2-9fcf-61f84235a8ae%2Fec5b414d-dbe1-48d6-9f8e-c070d76e0e92%2Fffipylj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold.
Selling price is $50 per unit.
a) Find the revenue, cost and profit functions using q for number of units.
b) Compute profit if 15,000 units are made and sold.
c) Compute profit if 2,000 units are made and sold.
d) Find the break-even quantity.
e) Find the break-even dollar volume of sales.
f) Construct the break-even chart
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