Question

HW 1 (50 pts) – Please complete all work in excel. Use excel to make the calculations (cells can be clicked on to view any formulas used) and be sure to identify your answer, including units. 1. ProHaul specializes in trans-American shipments for businesses through the delivery of containers. For every container the company loads on its trucks, ProHaul estimates the haul costs $1,000. In addition, containers are weighed and for each pound, there are hauling fees of $0.15. ProHaul plans to charge $0.49 per pound to his customers. a. How many pounds would a container have to hold in order for the company to Break Even? (10 pts) b. What would the total revenue be for this? (5 pts) c. The company finds out that to maintain the integrity of its containers, each container could only hold an average of 8,000 pounds. What would the company have to charge customers to make $5,000 in profit on each container? (10 pts)

Answer 1

	Fixed cost	$1,000.00
	Variable cost	$0.15
	Revenue per pound	0.49
a	Break even point in pounds= Fixed cost/(Revenue- Variable cost)	$2,941.18
b	Total revenue at the BEP= BEP*Revenue per unit	$1,441.18
c	Price to charge customer	0.90
	((Fixed cost+Profit)/Quanity)+ Variable cost

WORKINGS