Question

1)A firms profit from selling a particular item is given by the profit function p(x)=27.56x-142. If this same firm has a total cost function given by TC(x)=14.97x+142, then what is the selling price of the item in question? Your solution should be to 2 decimal places.

2) Cyclepath has a new giant cypress dx for a list price of $407.57. They want to make a profit of 16% on the selling price and overhead is 15% of the cost. They receive a trade discount of 47% from the distributor. What is the profit for the cypress bikes?

3) Initially, the contribution margin for a good is 63.43. If fixed costs are $1072 and an anticipated 574 units are being sold, how much can the price of the good drop before this business should shut down in the short run (assuming costs stay the same)?

4) Initially, the selling price of a good is $64.4 while the cost to produce the good is $21.84. If fixed costs are $918 and an anticipated 591 units are being sold, how much can the contribution margin drop before this business should shut down in the short run (all else equal)?

5) Initially, the selling price of a good is $64.7 while the cost to produce the good is $21.70. If fixed costs are $1118 and an anticipated 570 units are being sold, what is the lowest price this good can fall to before the company should shut down in the short run (all else equal)?

6) Ruth decides to open a Doggie sweater company. It costs her approximately $4.64 in wool costs, and she pays $2.04 in labour costs to her knitting ladies per sweater. Their group meets at a hall which costs approximately $743.26 for rent. If she sells the sweaters for $10.69, what is the break-even level of output(to two decimal places)?

7) Cyclepath has a new giant cypress dx for a list price of $593.33. They want to make a profit of 20% on the selling price and overhead is 19% of the cost. They receive a trade discount of 51% from the distributor. What is the profit for the cypress bikes?

8) Initially, the selling price of a good is $58.4 while the cost to produce the good is $23.47. If fixed costs are $1081 and an anticipated 645 units are being sold, what is the highest amount the costs per unit of this good can rise to before the company should shut down in the short run (all else equal)?

9) Sally has a business making stainless steel containers. Each container costs $8.59 dollars to make and the rent for her building is $796.21/month. Her online advertising costs are $53.91/month. Her shipping costs are $4.29 dollars per container. What is her shut-down point?

10) Initially, the selling price of a good is $53.6 while the cost to produce the good is $25.63. If fixed costs are $1089 and an anticipated 567 units are being sold, how much can the contribution margin drop before this business should shut down in the short run (all else equal)?

11) A company can sell interlocking bricks for $24.48. The company purchases the bricks for $13.08. Monthly overhead costs are $14144. How many bricks does the company need to sell in order to break even (round to the nearest integer)?