calculations, to earn revenue of $6,000 per month, she needs to sell printouts of 27,000 sheets per month. The printing machine has a capacity of printing 35,300 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,200 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. ✓ % →

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Nicole purchased a new printing machine and started a small printing shop. As per her
calculations, to earn revenue of $6,000 per month, she needs to sell printouts of
27,000 sheets per month. The printing machine has a capacity of printing 35,300
sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are
$2,200 per month.
a. Calculate the selling price of each printout.
Round to the nearest cent
b. If they reduce fixed costs by $310 per month, calculate the new break-even volume
per month.
Round up to the next whole number
c. Calculate the new break-even volume as a percent of capacity.
↑
%
→
Transcribed Image Text:Nicole purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,000 per month, she needs to sell printouts of 27,000 sheets per month. The printing machine has a capacity of printing 35,300 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,200 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. ↑ % →
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