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Mathematics Clinic => Grade 11 and 12 Mathematics => Topic started by: cagreen833 on Jun 7, 2019

Title: A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 ...
Post by: cagreen833 on Jun 7, 2019

Question 1

Elaine's business budget included sales of $350 000 and fixed costs of $52 600. If the total contribution margin for the business was $125 000, what are the sales needed to break even?

Question 2

A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 per period and manufacturing costs of $15.16 per cell phone. Advertising is expected to be $25 000 per period and a special promotional contest will involve providing a free case for a cost of $5.30 per cell phone. Each cell phone sells for $49.95. What is the break-even point in the number of phones?
◦ 4240
◦ 4168
◦ 4917
◦ 4886
◦ 5765

Title: A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 ...
Post by: ryansturges on Jun 7, 2019

Answer 1

FC = $52 600, Total CM = $125 000
CR = = = 0.357143
Break-even Sales (in $) = = = $147 280

Answer 2

5765

Title: A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 ...
Post by: cagreen833 on Jun 7, 2019

TY

Title: A company that makes cell phones has the following cost structure. The have fixed costs of $145 000 ...
Post by: ryansturges on Jun 7, 2019

You're welcome