A surfboard manufacturer lost $500,000 last yearduring a recession. Total revenue was $5,000,000and total variable costs were 40% of sales. Theproduction facility ran at 50% capacity. Theproduction manager wants to know the following:a. What is the percent capacity required to breakeven?b. When the economy recovers this year, if the plantruns at 100% capacity what net income could thecompany realize?c. There is a possibility that sales could be so strongthis year that the plant may be required to run at120% capacity by offering a lot of overtime to itsproduction workers. This would result in total variablecosts rising by 35%. On a strictly financial basis,should the production manager plan to exceedcapacity or should he advise top management tofreeze production at 100% capacity? Justify youranswer.AnswerSolution-9a. 58.3%9b. $2,500,0009c. $3,100,000

loss : $500,000 last year. Total revenue = $5,000,000. Total variable costs = 40% of sales.…

Answered: A surfboard manufacturer lost $500,000…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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An fruit grower knows from previous experience and careful data analysis that if the fruit on a specific kind of tree is harvested at this time of year, each tree will yield, on average, 127 pounds, and will sell for $4.6 per pound. However, for each additional week the harvest is delayed (up to a point), the yield per tree will increase by 2.1 pounds, while the price per pound will decrease by $0.07. A) How many weeks should the grower wait before harvesting the apples in order to maximize the sales revenue per tree? (Round your answer to the nearest tenth of a week.) Answer: __________ (rounded to the nearest tenth) B) Use your answer in part A to find the actual maximum revenue that can be expected. (Round your answer to the nearest dollar.) Answer: ____________ dollars (rounded to the nearest dollar)
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