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| Gentre for Continuing
& Online Learning
QUA0002 - Assignment # 2 (15 %)
There are 25 questions distributed over 17 exercises; each question is worth 1
point for a total of 25, then converted to base 15.
Kindly answer all questions and show your work.
Exercises
1._ Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following
information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are
$7800.00 and capacity per period is $00 units.
Calculate the break-even point in units. s
SP2NFF Uz fit Eced Peo CPP= Soo
Er= Fes (SP-Ue
a Feo0% fe
7300209)
BEF: Aov
Calculate the break-even point to nearest dollar.
00x 157 2 12 Yous
ve the AEP dollor Flue 8
F114, foo
Calculate the break-even point as a percentage of capacity,
200500
= 0.¥0 «100 een
= 40 vole S you, ALGONQUIN | Septre for Continuing
COLLEGE | & Online Learning
2. Compton and Sons is a local manufacturer of a product that sells for $13.50 per unit. Variable cost
per unit is $7.85 and fixed cost per period is $1220. Capacity per period is 1100 units.
Calculate the total cost when the production is 100 units.
cz Fett TEs 00S
Ve esaa0e #85 a ae a0
Tes bae0s 2
Calculate the break-even point in units. Round to nearest one.
Fes (17.50-% 2 a
4920: (13.50-% 85) = BEP S
ee Balag ae thee DEP 15
Be & wile OD 216 Units.
3. Plank, the new owner of the vehicle accessory shop, is considering buying sets of winter tyres for
$299 per set and selling them at $ 520 each. Fixed costs related to this operation amount to $ 3250
per month. itis expected that 18 sets per month could be sold. How much profit will Plank make
each month? Hint: use the contribution margin approach
CR: 222 = 0.485 = 12.5% Bps> Fe few
Spo GES: 32502 0.795
QrzFreiry EES: #647.06
Gg. 73505 922 EES: P64
Qz> 19.70
4, Bernoulli's business budget included sales of $350 000 and fixed costs of $52 600. Ifthe total
contribution margin for the business was $125 000:
; Find the contribution rate as a percentage approximated. eee 100". f
: OF 350,000
Vez 125000 ~ $2600 Cee) foe
vz Bo. F3ty
vez #2 y00 ae Nee : fon
ca: SP. R= Ofer 0.275142 oes
Che O74, 600 ck: 79.919% UIN | Soptre for Continuing
COLLEGE | & Online Learning
Ww For Tens d1as,e00
SP =8350.000 FCZ852,e00 Te 2 h1d5,00
hat are the sales needed to break even? a
BE: Fe/er
= $2600 +0.79314
= 66. 718.69
5. In order to pay his university fees, Feynman borrowed $ 7000 for five months at 5.5% Calculate the
amount of simple interest that will be charged to Feynman. Approximate your answer to the nearest
es ae Fooo x 0.055 x 0.416667
20. 1166? 2 160. 42$1
a he vou P47 60.92 fn intevest
6. Compute the amount of interest that Ms. Curie will be charged on $9000.00 that she borrowed for
four months at 9.0% Round to nearest one,
T= 41a
or
Remark: Here and henceforth assume simple interest unless otherwise
stated. _ 9900 0.09 « 0.3333
= 264.999
= D70f
7. Ritcher decided to deposit $ 875 from May 29, 2013 to August 13, 2013 at 11.5% per annum,
Compute the amount of simple interest he will earn at the end of the term. Round to nearest 100th.
2552 20,0339G1
QPS 0.115 x 0.384 CL
eared
