[dilenesa]

1-A retail company plans to work on a margin of 44% of retail price and to incur other variable costs of 4%. If it expects fixed costs of $20,000,
a)Find the equation relating total cost to sales
b)Find the profit it sales are $60,000.
c) Find breakeven revenue.
d) If profit is $15,000, what should be the revenue levels?
e) If the company has only one item at a price of$15 per unit, how do you convert the cost equation in terms of revenue in a cost equation in terms of quantity?
2-A small home business is set up with an investment of $1,000,000 for equipment. The business manufactures a product at a cost of a $60 per unit. If the product sells for $140, how many units must be sold before the business break even?
3-A certain car model cost $20,000 with a gasoline engine and $25,000 with a diesel engine. The number of miles per gallon of fuel for cars with these two engines is 25 and 30, respectively.Assume that the price of both types of fuel is $1.50 per gallon.
a) Drive the equation for the cost driving a gasoline powered car.
b) Drive the equation for the cost of driving a diesel powered car.
c)Find the breakeven point, that is ,find the mileage at which the diesel-powered car becomes more economical than the gasoline powered car.
4-During its first year of operation,Adidas company had total sales of 25,000 units with selling price of $100, total variable costs of $1,500,000 and total fixed cost of $350,000
a)Develop revenues,cost,and profit functions for the company in terms of quantity.
b) Find the break-even point in terms of quantity.
c) Convert the cost equation in terms of quantity in to a cost equation in terms of revenue.
d) Find the break- even revenue.
e) If profit had been $500,000 what would have been the sales volume (revenue) and the quantity of sales.
f) what would have been the profit if sales were $2,000,000?
5- A firm manufactures and markets a product that sells for $20 per unit. Fixed costs associated with activity total $40,000 a month, while variable cost per unit is $10.A maximum of 10,000 units can be produced and sold.
a) Drive the total revenue, total cost and total profit functions.
b) Sketch the total revenue, total cost and total profit functions in the same coordinate system.
c) What is the break-even point (in terms of quantity and sales volume)?
d) Drive the new total cost, total profit functions given that fixed cost is increased by $10,000 a month, and calculates the new break-even point.
e) Drive the new total cost and total profit functions given that unit variable cost is decreased by 20% and calculate the new break-even point.
f) Drive the new total revenue and total profit functions given that the unit selling price increases by 20% and calculates the new break-even point.
g) What is the relationship that you may inter from break-even point and fixed cost,selling price and break-even point and unit variable cost and break-even point?
h) Assume selling price increases by 10% and at the same time unit variable cost increases by 10%what is the effect of these changes on the break-even point-calculate the new break-even point. What lesson can we drive from this?
I) Suppose there is no any change in fixed cost, unit variable cost and selling price, what is the maximum profit the firm can generate, and at what level of output?
j) Keeping selling price and fixed cost constant, what is the maximum unit variable cost for the firm to break-even (at its maximum output level)?
k) Keeping all things as they are, what is the quantity level at which the company:
i. Makes a profit of $100,000?
ii. Looses $10,000
l)Had there been no capacity limitation, how would your answer have changed in part(I)?
/please show me all the necessary steps for the solutions/