Tabitha

Tabitha manufactures a product that sells very well. The capacity of her facility is 241,000 units per year. The fixed costs are $122,000 per year and the variable costs are $11 per unit. The product currently sells for $17.

a. What total revenue is required for a net income of $397,000 per year?

b. If sales were at 55% of the capacity and the variable costs decreased by 25%, what would be the net income per year?

Correct result:

a =  3170000
b =  143100

Solution:


397000 = a - (122000+11•241000)

a = 3170000

a = 3170000

Calculated by our simple equation calculator.

b = 17 • 241000 • 0.55 - (122000 + 11•(1-0.25)•241000)

b = 143100

b = 143100

Calculated by our simple equation calculator.



We would be very happy if you find an error in the example, spelling mistakes, or inaccuracies, and please send it to us. We thank you!






Showing 0 comments:
avatar




Tips to related online calculators
Our percentage calculator will help you quickly calculate various typical tasks with percentages.
Do you have a linear equation or system of equations and looking for its solution? Or do you have quadratic equation?

You need to know the following knowledge to solve this word math problem:

Next similar math problems:

  • Prices
    pokladna The price of the product was increased by 35%. How many percents of the new price we have to make it cheaper so that its price is equal to the original price?
  • Shopping center
    bicycle_gears_3 The shopping center buys from the manufacturer bikes at a purchase price of 180 €. It sells them for a sale price of 250 €. However, in the advertising for the sale of these goods, the shopping center spent 20% of the selling price of all bicycles in stoc
  • Enterprise
    podniky_socik The value of annual production enterprise is 7.1 million USD. The average annual growth rate is 1.5%. What will be value of production at the end of the fifth year?
  • Loss
    books_34 A bookstore purchased from a publisher the biography of a well-known politician for R15 per copy, but sales have been very poor. The manager has decided to mark the copies down to R12 each to make a quick sale. Calculate the loss on each book as a percent
  • Profit gain
    percent_12 If 5% more is gained by selling an article for Rs. 350 than by selling it for Rs. 340, the cost of the article is:
  • Commission 2
    compare_2 Mr gomez sells used cellphones. His commission for every cellphone sold is 20%. If his total sales is Php 33850, how much is his commission? Please, please, please show your solution.
  • Researchers
    house Researchers ask 200 families whether or not they were the homeowner and how many cars they had. Their response was homeowner: 14 no car or one car, two or more cars 86, not homeowner: 38 no car or one car, two or more cars 62. What percent of the families
  • Adding percentages
    percent 55%+36%+88%+71%+100=63% what is whole (X)? Percents can be added directly together if they are taken from the same whole, which means they have the same base amount. .. . You would add the two percentages to find the total amount.
  • Summerjob
    tree2 The temporary workers planted new trees. Of the total number of 500 seedlings, they managed to plant 426. How many percents did they meet the daily planting limit?
  • Borrowing
    test_5 I borrow 25,000 to 6.9% p.a.. I pay 500 per month. How much will I pay and for how long?
  • Walking
    cargo_truck_5 Of the 450 students at the school, 432 walks to school. What percentage is this?
  • Sum of money
    penize_19 On a certain sum of money, invested at the rate of 10% compounded annually, the difference between the interests of the first year and the third year is 315 . Find the sum.
  • Electricity consumption cost
    Temelin4veze1 Last year Karol family reduced its electricity consumption by 31% compared to the previous year and paid CZK 2883 less. How many CZK is electricity last year and how many two year ago?
  • Merchant
    sale_3 The merchant lower cost by 10% in December when it was not sold. Again in January lower cost by 20% and now costs 576 €. A. How much the goods stood originally? B, how much cost the goods after the first lowering? C, How many percents totally merchant low
  • Car repair
    cars John bought a car for a certain sum of money. He spent 10% of the cost to repairs and sold the car for a profit of Rs. 11000. How much did he spend on repairs if he made a profit of 20%?
  • Former price
    books The price of an article is cut by 10%, to restore it to the former value, by what percent the new price must be increased?
  • Discount price
    sveter_6 Coat cost 150 euros after sales discount. What is the original price when the discount is 25% of the original price?