Anitra Anthony sells varions pottery items at regional craft fairs. Her fixed costs are $4325 per year. The average price for a piece of pottery is $6.50and the average variable are $4.00 per unit.
1) How many pieces of pottery must Anitra sell to just cover her expenses?
2) If Anitawants to earn $7000 in profit, how many pieces of pottery must she sell?
Required sales in units=4325+70002.50=4530 units
Leota Mohrman owns and operates THH, which provideslive plants and flower arrangement to professional offices. Leota has fixed costs of $2 380 per month. Variable costs average $25 per job. THH changes $60 per month for the averagejob.
1) How many jobs must THH average each month to break even?
2) What is the operating income for THH in a month with 65 jobs? And with 100jobs?
Operating Income 2=$6500
3) Suppose that THH decides to increase the price to $75 per job. What is the new even break point?BEP=238050=47.6 jobs
Amberson Company has fixed costs of $360 000. At the break even point, 120 000 units are sold. If the price is $9 per unit, what is the variable cost per unit?x=-720000-120000=$6 per unit
Green Bay Motors Inc. , employs 20 sales personnel to market its line of luxury automobiles. The average car sells for $65 000 and 6 percentcomission is paid to the salesperson. Green Bay Motor is considering a change to the comission arrangement where the company would pay each salesperson a salary of $1500 per month plus acomission of 2 percent of the sales made by that salesperson. What is the amount of total monthly car sales at which Green Bay Motors would be different as to which plan to select?