Categories
Mathematics

1. John Smith owner of a women’s handbag store wanted to know how many bags he h

Need Help With your assignment? Get expert academic writing assistance! We can write any paper on any subject within the tightest time.

Hire A Writer

1. John Smith owner of a women’s handbag store wanted to know how many bags he had to sell to cover his fixed costs in order to break even. John knew that his fixed costs including rent, insurance and electricity were about $35,000. He also had a unit variable cost of $35 per bag for labor, and materials. If the price John charges for each of his bags is $70, what is his break-even point quantity?
2. Given the mark up on sales price as 33 percent, what is the retailer’s cost if the sales price is $ 65?
3. A rice cooker manufacturer had the following costs and expected sales: Variable costs = $30 per unit; total fixed costs = $785,000; expected unit sales of 60,000. If the manufacturer wants to earn a 40% markup on sales, the manufacturer’s unit price is_____:
Formulas
Break Even Point = Total Fixed Cost/(Sales Price/unit – Variable Cost/unit)
Mark up based on Sales Price = (Unit Cost)/(1 – markup %)
Profit – (Total Revenue) – (Total Cost) where Total cost = [Total Fixed Cost + (Variable Cost/unit * # of units)
Total Revenue = Sales Price/unit * Quantity

Need Help With your assignment? Get expert academic writing assistance! We can write any paper on any subject within the tightest time.

Hire A Writer

Leave a Reply