Homework Clinic

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

Title: A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is ...
Post by: penguins on Jun 7, 2019

Question 1

Raider Corporation made $130 000 in sales last year. They had fixed costs of $29 300 and variable costs of $26 000. What is the breakeven point if their capacity is at $160 000? Provide algebraic statements of the revenue and cost functions, as well as a breakeven point in sales dollars.

Question 2

A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is $840 000 and the variable cost per phone is $150. Determine the breakeven volume for Motorola using the contribution margin approach.

Title: A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is ...
Post by: nyrave on Jun 7, 2019

Answer 1

TR = 1 × X
= = 0.2
TC = 29 300 + 0.2X
1.00X = 29 300 + 0.2X
0.8X = 29 300
X = 36 625

Answer 2

Fixed cost = $840 000;   Selling price per unit = $650;   Variable cost per unit = $150; Contribution margin per unit = 650 - 150 = 500
Breakeven volume = = 1680

Title: A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is ...
Post by: penguins on Jun 7, 2019

Thanks

Title: A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is ...
Post by: nyrave on Jun 7, 2019

Welcome :)