Finance-AW-Q311 online

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Problems

1 Ann Page Co. … fixed costs $30,000 per year. Variable costs per unit are $17. Sales price per unit is $30.

a) What is the contribution margin of the product?

b) Calculate the breakeven point in unit sales and dollars.

c) What is the operating profit (loss) at

i) 1,500 units per year?

ii) 3,600 units per year?

d) Plot a breakeven chart using the foregoing figures.

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Defining Problem

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Related Services

2 Mrs. Jones owns 100 shares of stock in Daimler-Benz valued at 16.5 Euros per share. What is the value in $U.S. of her stock if

a) 0.90 € = $1

b) 0.70 € = $1

c) 1.20 € = $1

3 John is planning on purchasing his German dream car for 65,000 Euros How much does he need in $U.S. if there are 0.98 Euros to the $U.S.?

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Summary