Break-Even Analysis

Kevin works for a company which produces printers. A printer sells for $163.95 and costs $48.28 to produce. In one month, Kevin's company sold 427 printers, earning a profit of 22,599.09. How great were the company's non-production overhead expenses, to the nearest dollar?

$26,792

Bloro Appliances is pushing a new model of dishwasher. It costs Bloro $71.22 to put each dishwasher on the sales floor, but they can sell the dishwashers for $285.50 apiece. Bloro has three primary salespeople, each of whom earns a different commission per dishwasher sold. Their sales data for the past six months is shown below. In order to stock the dishwashers, Bloro Appliances had to sign a contract which included costs of $15,975. How much profit did Bloro Appliances gain from sales of these dishwashers over the past six months?

$45,348.48

Faye, George, and Hannah are salespeople working at Lasht Cellular. It costs Lasht Cellular $21.49 per phone to stock a certain brand of phone, which they sell for $68.75. The three salespeople earn differing amounts of commission per phone sold, based on their seniority. The following table shows their respective sales in the past month. If Lasht Cellular had fixed overhead costs of $14,350 last month, how much profit did it gain last month?

$9,761.61

A furniture manufacturer must pay $16.91 to make a certain kind of chair, which it can sell for $55.75. If the manufacturer has starting overhead costs of $18,340, not including production costs, how many chairs must it sell to realize a profit of $24,850, to the nearest chair?

1,112

It costs a publishing company $0.55 to print one copy of a certain novel. This company paid $725,000 for the rights to the novel. If they can sell a copy of the novel for $6.75, how many copies of the novel must they sell to break even, to the nearest hundred?

116,900

The following graph represents the cost and revenue functions for custom-made computers. How many computers have been sold at the break-even point?

12

Khybar Inc. manufactures dental x-ray machines. The company can sell an x-ray machine which cost $508.17 to produce for $1,295.75. Each of the company's two salespeople earns a different commission per sale, as shown in the table below. Last year, Greg sold 11 fewer x-ray machines than Colleen did. Khybar Inc.'s total expenses last year, not counting production costs or commissions, came to $79,558.59. If Khybar Inc. broke even, how many x-ray machines were sold last year in total?

153

Marcy's company produces grandfather clocks. Each clock costs them $164 to make, and they can sell a clock for $625. If their annual overhead costs, not counting the cost to produce the clocks, comes to $96,000, how many clocks must Marcy's company sell each year to break even? Round to the nearest whole clock, if necessary.

208

A chicken farmer can produce one crate of eggs at a cost of $9.86, and can sell that crate for $34.24. If the farmer has a starting overhead cost of $7,312, not including production costs, how many crates must be sold in order to realize a profit of $11,300, to the nearest crate?

763

Calvin works at a facility which processes apples. It costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. Due to the nature of the process and contractual agreements, Calvin's facility must make and sell three jars of applesauce for every two bottles of apple juice. A jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. If the facility has annual overhead costs of $368,500, not including production costs, how many bottles of apple juice will the facility have sold when it breaks even every year? Round to the nearest whole bottle, if necessary.

77,579

It costs a petroleum refinery $0.39 to refine one gallon of gasoline, and $0.39 to refine one gallon of natural gas. The refinery can sell gasoline for $2.11 per gallon, and can sell natural gas for $1.60 per gallon. Due to the refining process, the refinery must produce and sell twice as much natural gas as it does gasoline. If the refinery's monthly overhead costs, not including production costs, are $180,000, how many gallons of natural gas will the refinery have sold when it breaks even each month? Round to the nearest whole gallon, if necessary.

86,957

June has decided to take up quilting. She bought a sewing machine for $135. It costs her $11.75 in raw materials to make a quilt, and she can sell a quilt for $28.50. Which of the following graphs best illustrates June's situation?

I

The following graph shows the relationship between cost and revenue for a manufacturer of radios. Which of the following pairs of equations best suits this graph?

I and III

The table below shows possible cost and revenue equations for a manufacturer of cameras. Which of the following pairs of equations will never break even?

I and IV

Arderi Air Conditioning sells one primary model of air conditioner. Each unit of this model costs them $61.25 to produce, but it sells for $142.50 apiece. Arderi Air Conditioning employs three salespeople, each of whom earns a different commission per unit sold, as shown on the following table. Last month, Arderi Air Conditioning had a total fixed overhead cost of $7,622.25. It is known that one salesperson sold 51 units, one salesperson sold 43 units, and one salesperson sold 54 units. Which arrangement of sales would cause Arderi Air Conditioning to break even?

Mary sells 43 units; Jay sells 51 units; Abby sells 54 units

Sodresh Sundials manufactures large stone sundials. It costs $14.22 to produce a sundial, which can then be sold for $36.75. The following table shows Sodresh Sundials's non-production overhead costs and sundials sold over a period of one year. In how many months did Sodresh Sundials either break even or turn a profit?

four

Which of the following expenses is not a fixed cost?

packaging costs