MAT 540 Week 1 Homework-CH 1 and 11

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MAT 540 WEEK 1 Homework - CH 1 and 11 Attached is a template for you to use for Homework 1. Note that I expect you to show the work in your calculations and then insert your numerical answers in the yellow boxes. I will not give you credit for your solutions (even partial credit) unless I can see your work. As a worst case, you can do you work on paper, scan it and send the scanned work plus the Excel template to me for grading. Chapter 1 , Problems 2, 4, 12, 14, 20, 22 2. The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000.The variable cost of recapping a tire is $9.The company charges $25 to recap a tire. a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit. Total cost = $60,000+ $9*12,000 = $168,000 Total revenue = $25*12,000= $300,000 Total Profit = Total revenue - Total cost = $300,000 - $168,000= $132,000 b. Determine the annual break - even volume for the Retread Tire Company operation. If X is the annual break even quantity then, Total cost for quantity X = Total Revenue for Quantity X $60,000+ $9* X = $25 X => (25 - 9) X = $60,000 => X = $60,000 /(25 - 9) = 3 , 750 4. Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break - even volume for the company. If X is the monthly break even quantity then, Total cost for quantity X = Total Revenue for Quantity X $ 25 ,000+ $ 0.15 * X = $0.40 X => (0.40 - 0.15) X = $ 25 ,000
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