# Math Help!

If anyone could help me with these questions it would be greatly appreciated. Also if you could provide a step by step of how you got the answers that would be great!

Engineering estimates indicate that the variable cost of manufacturing a new product will be \$35 per unit. Based on market research, the selling price of the product is to be \$72 per unit and there is an additional selling expense which is estimated to cost the company \$10 per unit. The fixed costs applicable to this new product are budgeted at \$4,800 per period and the initial production capacity is 430 units. Given this information determine the following:

a) The income at a sales volume of 70 units.
b) The profit or loss at a volume of 30% of capacity.
c) The net income assuming total sales of \$23,400.
d) The number of units that must be sold to achieve a net income of at least \$5,000.

 gevatter Posts: 6, Reputation: 10 New Member #2 Feb 18, 2012, 05:48 AM
a) We sold 70 Units, so 70 * 72\$(Sale Prize) = 5040\$ So our income for 70 Units is 5040\$

b) 30% of 430 Max Capacity = 430 / 100 *30 = 129 Units

First we get our income (like "a"): 129 * 72\$(Sale Prize) = 9288\$

Second we need our production costs for 129 Units: \$35 + 10\$ = "45\$ production costs per unit"

129 * 45\$ = 5805\$ Production costs for 129 Units

Next Fixed Costs for the whole Production + Production Costs for 129 Units

4800\$ + 5802\$ = 10605\$

So the profit / loss for selling and production of 129 Unit (30%) is = 9288\$ Income - 10605\$ Production Costs

= -1317\$ Loss

C) Net Income assuming total sales of \$23,400

First Income divided with sale prize for one unit

23400\$ / 72\$ = 325 Units

This means we sold 325 Units to get an income of 23400\$ now we need the NET Income for 325 Units:

325 * 45\$ (production costs per unit) = 14625\$ + Fixed Costs 4800\$ = 19425\$ Costs for the Whole Production

So the Net Income is: 23400\$ - 19425\$ = 3975\$ NET INCOME

d) we need to achieve a Net Income of 5000\$

First we need the net income for one unit without the fixed costs:

72\$(sale prize) - 45\$(production costs per unit) = 27\$

Now we can say :

x*27 - 4800 = 5000 |+4800
x*27 = 9800 | /27
x = 362,96... ~ 363 Units

So we need at least 363 Units to achieve a Net Income of 5000\$, because: 363 Units * 27\$ (72\$-45\$) = 9801\$ - Fixed Costs(4800\$) = 5001\$ Net Income!!!

## Check out some similar questions!

?Math 110-finite math [ 1 Answers ]

A company's computer must consist of 4 letters with no repetition. How many passwords are possible?

To take math or not to take math? Warning:long [ 7 Answers ]

Hey I need some advice. I'm currently a high school junior, and I am HOPELESS at mathematics. I've always managed to scrape by with 65s, and trust me its not lack of effort, I try really hard. All my other grades are over 90s, with the exception of sciences which are in the high 80s. Last year I...

What math is easier- college algbera or liberal arts math?

I need math skills on this math problems [ 6 Answers ]

81 divided by 3726.83 divided by 3158