Tabitha manufactures a product that sells very well. The capacity of her facility i 207,000 units per year. The fixed costs are $157,000 per year and the variable costs are $14 per unit. The product currently sells for $16. a. What total revenue is required for a net income of $482,000 per year? Round to the nearest cent b. If sales were at 55% of the capacity and the variable costs decreased by 25%, what would be the net income per year?
Tabitha manufactures a product that sells very well. The capacity of her facility i 207,000 units per year. The fixed costs are $157,000 per year and the variable costs are $14 per unit. The product currently sells for $16. a. What total revenue is required for a net income of $482,000 per year? Round to the nearest cent b. If sales were at 55% of the capacity and the variable costs decreased by 25%, what would be the net income per year?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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
Transcribed Image Text:Tabitha manufactures a product that sells very well. The capacity of her facility is
207,000 units per year. The fixed costs are $157,000 per year and the variable
costs are $14 per unit. The product currently sells for $16.
a. What total revenue is required for a net income of $482,000 per year?
Round to the nearest cent
b. If sales were at 55% of the capacity and the variable costs decreased by 25%,
what would be the net income per year?
Round to the nearest cent
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