Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.a. Calculate Night Shades' Breakeven point.b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses?c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?
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Night Shades Inc. (NSI) manufacturers biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000.
a. Calculate Night Shades' Breakeven point.
b. how much
c. Night Shades' manager expects an operation profit of $200,000. How many sunglasses must be sold to attain this profit?
breakeven formula:
a.
selling price =$150
cost =$70
fixed cost =$100,000
B.
IF sold 500 glasses:
if units sold=4000
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- Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. a. Calculate Night Shades’ Breakeven point. b. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? c. Night Shades’ manager expects an operating profit of $200,000. How many sunglasses must be sold to attain this profit?Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. Calculate Night Shades’ Breakeven point. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? Night Shades’ manager expects an operating profit of $200,000. How many sunglasses must be sold to attain this profit?Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.
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- A firm manufactures and sells high quality business printers and ink toners. Each printer sells for $650 and each toner for $100. The average user keeps the printer for 5 years and consumes 4 toners every year. In response to a recent significant drop in printer sales (which will reduce future toner sales as well) the firm wants to lower the printer price to $500. Assume that income from toner sales occurs at year-end and the firm’s cost of capital is 10%. How much of an increase is needed in the toner price to cover the loss in printer price?A recently retired professor, Melinda Marketing, plans to establish the Hot-Air FanCompany and manufacture circulating fans. She estimates the fixed cost of operations tobe $357,500 annually. The variable cost of producing the fans is forecasted to be $85 perunit.a. How many fans must be sold to break even if the fans are priced at $150?b. If Hot-Air sells 6,000 fans, what will be the EBIT?c. If Hot-Air sells 6,000 fans and has interest expense of $8,125, what is Hot-Air’stimes-interest-earned? Hot-Air does not have any nonoperating expenses.d. If the fans are priced at $150, what is Hot-Air’s breakeven sales?You are opening a coffee shop. You estimate the weekly costs of $375 for rent, $2100 for employee costs, and $125 for miscellaneous costs. The ingredients and material cost for each cup of coffee is 0.35 (cents) per cup. 1) Create a cost function for the coffee shop. 2) If the investors estimate that they will be able to sell 1100 cups of coffee per week. How much should they charge per cup to make a profit? Justify your answer and/or explain.
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