Lester L.

Quinones López SID

Quantitative Analyss for Management (11th Ed)
Chaptr 1 Exercises

Ex. 1-14
If Gina Fox sells 20 shirts, what wil her total revenue be?
What will he total variable cost be?
Total revenue will be $300 and total variable cost $160.

Data
s 15
f 350
v 8
X 20

Total Revenue = s(X) 300

Total variable costs =v(X) 160

(b) How many shirts must Gina sell to break even?

What is the total revenue for this?
BEP is 50 shirts at $15 each for $750 total revenue.

Break Even Point Analysis

X=f/(s-v), X=350/(15-8), X=350/7, X=50, BEP=50 50
0=sX -f-vX, 0=15(50)-350-8(50), 0=750-350-400, 0=0 0

X=350/(15-8)
X=350/7
X=50

Gina must sell 50 shirts at $15 each to break even.

The total revenue for this BEP is $750. (sX= 15*50)

Ex. 1-17 Katherine D’Ann football program sales.

How many programs must Katherine sell in order to break even?

Katherine must sell 700 programs at $5 each.

Data
s 5
f 1400
v 3

BEP Analysis
X=f/(s-v), 1400/(5-3) 700
0=sX-f-vX, 5(700)-1400-3(700), 3500-1400-2100, 0=0 0

Ex. 1-19 Misty Farris

With a selling price of $40 each, how many cues must be sold to break even?
What would total revenue be at this break even point?
BEP is 160 cues at $40 each for a total revenue of $6400.

Data
s 40
f 2400
v 25

BEP Analysis
X=f/(s-v), =2400/(40-25), =2400/15, =160 160
0=sX-f-vX, =40(160)-2400-25(160),=6400-2400-4000, 0=0 0

Ex. 1-20 Misty Farris ($50 cue)

If the selling price of each cue is $50 instead of $40 and cost remain the same what would the new BEP be?
New selling price $50 50
New BEP = 2400/(50-25) 96
0=59(96)-2400-25(96),=4800-2400-2400, 0=0

Ex. 1-22 Golden Age Retirement Planners

How many people must attend each seminar for GARP to break even?
To break even, GARP needs 57.8947 people to attend.

Data
s 250
F 11000
v 60

BEP Analysis
X=f/(s-v) 57.89473684
0=sX-f-vX 0

Ex. 1-23 Tutoring Company

(a) If students are charged $20 to attend each session, how many students must enroll for the company to break even?
(b) If the company rents a smaller room for $200 instead of $300, how would this affect the BEP?

(a) Company must enroll 25 students to break even.

(b) Renting a smaller room for $200 reduces enrollment need to 18.3333 students in order to break even.

Data Ex. 1-22(a) Ex. 1-22 (b)

s 20 20
f 375 275
v 5 5

BEP Analysis
X= f/(s-v) 25 18.33333
0=sX-f-vX 0 0
new BEP be?

ompany to break even?

break even.