1. Write a linear cost function for each situation. Identify all variable used.
A parking garage charges 50 cents plus 35 cent per half-hour

2. Find the cost function in each case. Marginal cost: $90; 150 items cost $16,000 to produce.

3. Supply and Demand: Let the supply and demand functions for butter pecan ice cream be given by
p= S(q)=2/5q and p=D(q) = 100-2/5q
where p is the price in dollars and q is the number of 10-gallon tubs
a). Graph these on the same axes
b) Find the equilibrium quantity and the equilibrium price.

4. Marginal cost of Coffee: The manager of a restaurant found that the cost to produce 100 cups of coffee is $11.02 while the cost to produce 400 cups is $40.12
Assume the cost C(x) is a linear function of x, the number of cups produced.
a). Find a formula for C (x)
b). What is the fixed cost?
c). Find the total cost of producing 1000 cups
d). Find the total cost of producing 1001st cups
e). Find the marginal cost of the 1001st cup
f). what is the marginal cost of any cup and what does this mean to the manager?

5. Break-Even Analysis: To produce x units of a religious medal costs C(x) = 12x +39 The revenue is R(x) = 25x. Both C(x) and R(x) are in dollars
a) Find the break-even quantity
b). Find the profit from 250 units
c) Find the number of units that must be produced for a profit of $130.

Solution Preview

Please see the attached file for detailed solutions.

1. Assume the parking time is x hours. Then the cost in dollars is
C = ...

Solution Summary

The solution is comprised of detailed explanations on cost function, such as marginal cost and break-even analysis. It also shows how to find the equilibrium price and quantities from supply and demand functions.

James Manufacturing company provides the following information about its cost structure:
Selling Price $20.00 per book
Variable cost per unit: $6.00
Fixed costs: 112000 per year
How many units must be sold to break-even?
Assume the variable costand the price were both cut by $4.00 per unit. Which of the following would c

What happens at a company's break-even point? How can you compute the break-even point for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?

See attached file for full problem description.
The C-V-P Equation
The company sells lawnmowers for $895 each. The variable cost per lawnmower is $20. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmo

Grand Isle, Louisiana, is a popular resort, but it regularly faces a shortage of fresh water. Marie Bain has the entrepreneurial spirit and plans to open a business, shipping barges of fresh water to the town. She estimates the fixed cost to be $3,000,000, and the variable cost (water, labor, fuel) to be $50,000 per barge load.

What is a break-even point? If an organization's fixed costs increase, what happens to the break-even point? How can the break-even point be lowered? Why is the break-evenanalysis an important tool for management? When evaluating a company, how might this information be used?

1. ABC Company sell for $20 per unit, and the variable cost to produce them is $15. Gateway estimates that the fixed costs are $80,000.
a. Compute the break-even point in units.
b. Fill in the table below (in dollars) to illustrate that the break-even point has been achieved.
Sales _______________
-Fixed costs _____

How do you conduct a break even analysisand can one be done with the following information, using the numerical calculations break-evenanalysis?
A County Sheriff's Department sells its products (officers) to contract cities at a cost of $197,000 per officer. Each officer works 40 hours per week. The contract city purchase

Last year Easton Company reported sales of $720,000, a contribution margin ratio of 30% and a net loss of $24,000. Based on this information, the break-even point was:
$640,000
$880,000
$744,000
$800,000

Bob's Burritos sells all of their burritos for $4.50 while the cost is only $3.00. If the monthly fixed expense is $1,500, how many burritos must Bob sell a month to breakeven?
Need the exact number of burritos to sell in a month in order to break-even, I must show how to get that number, and I am having a problem with the f