3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold. Selling price is $50 per unit. a) Find the revenue, cost and profit functions using q for number of units. b) Compute profit if 15,000 units are made and sold. c) Compute profit if 2,000 units are made and sold. d) Find the break-even quantity. e) Find the break-even dollar volume of sales.
3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold. Selling price is $50 per unit. a) Find the revenue, cost and profit functions using q for number of units. b) Compute profit if 15,000 units are made and sold. c) Compute profit if 2,000 units are made and sold. d) Find the break-even quantity. e) Find the break-even dollar volume of sales.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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