Home / Expert Answers / Advanced Math / rachel-purchased-a-new-printing-machine-and-started-a-small-printing-shop-as-per-her-calculations-pa911

(Solved): Rachel purchased a new printing machine and started a small printing shop. As per her calculations, ...



Rachel purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $4,500 per month, she needs to sell printouts of 25,000 sheets per month. The printing machine has a capacity of printing 38,900 sheets per month, the variable costs are $0.04 per sheet, and the fixed costs are $1,800 per month.

a) Calculate the selling price of each printout. (round to nearest cent)

b) If they reduce fixed costs by $440 per month, calculate the new break-even volume per month. (round up to the next whole number)

c) Calculate the new break-even volume as a percent of capacity. (round two decimal places)

 



We have an Answer from Expert

View Expert Answer

Expert Answer


Fixed cost = $1800 per month Capacity of printing = 39800 sheets/month Variable cost = $0.04 per sheet Revenue = $4500 per month a). Revenue = (Sellin
We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe