Question

To produce x units of a religious medal costs C(x)- 15x +77. The revenue is R(x)-26x. Both cost and revenue are in dollars. a. Find the break-even quantity b. Find the profit from 250 units c. Find the number of units that must be produced for a profit of $110 a.units is the break-even quantity. (Type an integer)

Answer 1

Req a:
Selling price per unit:			26
Less: Variable cost per unit			15
Contribution margin per unit			11
Break even units:
Total fixed cost			77
Divide: Contribution margin per unit			11
Break even units:			7	units
Req b:
Contribution margin per unit			11
Number of units sold			250
Total contribution			2750
Less: Fixed cost			77
Net income			2673
Req c:
Desired profit			110
Add: Fixed cost			77
Desired contribution			187
Divide: Contribution margin per unit			11
Target sales units			17	units