Question

Arctic Company sells pairs of shoes for $142 each. The variable costs per pair of shoes are $47 and the fixed costs per week are $6.193. a. Calculate the number of pairs of shoes that need to be sold every week to break even. Round up to the next whole number b. If 77 pairs of shoes were sold, calculate the net income in a week. (If the net income represents a loss, express your answer as a negative dollar amount.) $0.00 Round to the nearest cent

Answer 1

Let CCX) - cost Function and function, RC4)- Revenue P(x) - Profit function then C(= fined cost t (Variable Cast)xx R(X) =( Number of item sold JA(Price Per Unit) P(x) = R(x) – C(4) Here 1 week [(x) = 6,193+472 L for a R(X) = 149x P(X) = 14.234 - (478 + 6,193) | P(x) = 95x-6,1937 for a 1 week (a break Even point enist when een C(X) = R(2) OR P(1) = 0 =) 953-6193 = 0 =) = 6193 = 65.18947 => x=667 Rounded to nent not) I the nearest For this we need to find Profit when n=77 units were sold. 795 (b) L

P(x) at (2= 77) = 95 (77) - 6,193 = 1122 | Profit of $1122 (Co) Here we need to find number of units a such that Profit Plu) is 7,305 =) P(x) = 7,305 =) 957 - 6,193 = 7,305 = 95% = 7305 + 6,193 =) 95% = 13,498 -) = 13,498 = 149.0842105 95 => [a=143) Pair of Shoes should be sold to earn a Profit of $ 7305.
Here first we construct all three functions Cost Function,Revenue Function and Profit Function then we used these functions to solve our problems.