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  • Alba, Camille Joy M. MGT211: Total Cost 240,000.00

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    Camille Joy Alba
    11 vues4 pages
    The document provides calculations to determine the break-even point for several different business scenarios: 1) A tire shop has fixed costs of $60,000 and variable costs of $9 per tire. The selling price is $25 per tire. The break-even point is 3,750 tires. 2) A company has fixed monthly costs of $25,000 and variable costs of $0.15 per pound. Selling price is $0.40 per pound. The break-even point is 100,000 pounds. 3) A pizza shop has fixed costs of $27,000 and variable costs of $3.75 per pizza. Selling price is initially $8.95 per pizza

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    The document provides calculations to determine the break-even point for several different business scenarios: 1) A tire shop has fixed costs of $60,000 and variable costs of $9 per tire. The selling price is $25 per tire. The break-even point is 3,750 tires. 2) A company has fixed monthly costs of $25,000 and variable costs of $0.15 per pound. Selling price is $0.40 per pound. The break-even point is 100,000 pounds. 3) A pizza shop has fixed costs of $27,000 and variable costs of $3.75 per pizza. Selling price is initially $8.95 per pizza

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    © All Rights Reserved
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    Signaler comme contenu inapproprié
    11 vues4 pages

    Alba, Camille Joy M. MGT211: Total Cost 240,000.00

    Transféré par

    Camille Joy Alba
    The document provides calculations to determine the break-even point for several different business scenarios: 1) A tire shop has fixed costs of $60,000 and variable costs of $9 per tire. The selling price is $25 per tire. The break-even point is 3,750 tires. 2) A company has fixed monthly costs of $25,000 and variable costs of $0.15 per pound. Selling price is $0.40 per pound. The break-even point is 100,000 pounds. 3) A pizza shop has fixed costs of $27,000 and variable costs of $3.75 per pizza. Selling price is initially $8.95 per pizza

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 4

    ALBA, CAMILLE JOY M.

    MGT211

    2.)
    Fixed annual cost 60,000.00
    Vcost/unit 9.00/tire
    SP/unit 25.00/tire

    a.) TOTAL COST 240,000.00

    Fixed cost 60,000.00


    + Variable cost 12000 x 9 108,000.00
    Total cost 168,000.00

    b.) BREAKEVEN 3,750 units

    FC + VC = S
    60000 + 9x = 25x
    60000 = 25x - 9x
    60000 = 16x
    16 16
    x = 3,750 units

    4.) Fixed monthly cost 25,000.00


    Vcost/pound .15/lb
    SP/pound .40/lb

    BREAKEVEN 100,000 lbs.

    FC + VC = S
    25000 + .15x = .40x
    25000 = .40x - .15x
    25000 = .25x
    .25 .25
    x = 100,000 lbs.
    8.) Breakeven volume is 46.875% of maximum operating capacity

    Breakeven volume/maximum operating capacity


    3,750/8,000 = .46875 or 46.875%

    18.) Equipment (FC) 27,000.00


    Vcost/unit 3.75/pc
    SP/unit 8.95/pc

    a.) BREAKEVEN 5,192 pieces

    FC + VC = S
    27000 + 3.75x = 8.95x
    27000 = 8.95x - 3.75x
    27000 = 5.2x
    5.2 5.2
    x = 5,192.31 pcs.

    b.) 260 days to reach break-even point

    5,192 pizzas/20 pizza per day = 259.62 days

    c.) NEW BREAKEVEN 6,429 pieces


    321 days to reach break-even point

    FC + VC = S
    27000 + 3.75x = 7.95x
    27000 = 7.95x - 3.75x
    27000 = 4.2x
    4.2 4.2
    x = 6,428.58 pcs.

    6,429 pizzas/20 pizza per day = 321.45 days


    22.) Initial start-up cost 350,000.00
    Vcost/unit 12,000.00/student
    SP/unit 18,000.00/student

    a.) BREAKEVEN 58 students

    FC + VC = S
    350000 + 12000x = 18000x
    350000 = 18000x - 12000x
    350000 = 6000x
    6000 6000
    x = 58.33 students

    b.) PROFIT 100,000.00

    Revenue 18000 x 75 1,350,000.00


    -Fixed cost - 350,000.00
    -Variable cost 12000 x 75 - 900,000.00
    Profit 100,000.00

    c.) No, the profit will decrease.

    Revenue 24000 x 35 840,000.00


    -Fixed cost - 350,000.00
    -Variable cost 12000 x 35 - 420,000.00
    Profit 70,000.00
    Salaries 140,000.00
    Principal for 30yrs 4,500,000.00/30 150,000.00
    Interest 8% 360,000.00
    TOTAL FIXED
    COST 650,000.00
    Vcost/unit .60/car
    SP/unit 3.20/car

    A. 250,000 cars to reach break-even point


    FC + VC = S
    650000 + .60x = 3.20x
    650000 = 3.20x - .60x
    650000 = 2.6x
    2.6 2.6
    x = 250,000 cars

    B. 685 cars per day


    250,000cars/365days = 684.93cars/day

    According to the website of Wards Auto, 2010 ratio of car to world population is 1:6.75. If this ratio
    will be used to estimate the cars of approximately 40,000 combined population of Draper town’s and university, we
    will have roughly 7,200 cars. On another survey conducted for ICSC, vast majority of Americans visit a shopping
    center at least once a week. By using this data, we can assume that 7,200 cars may park per week and the break-
    even point is only 250,000 cars annually or average of 4,800 cars weekly. I therefore conclude that this project is
    profitable based on data gathered.

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