Quantitative Method

[Legendary]

Salam everyone! Its that time of year again... school... Anyway i am not confident in my work for the following problem. Can anyone help me out?

Each weekend at the farmers market, Yasmine makes and sells pralines. Her estimated total cost, as a function of the number (x) of pralines made and sold, is given by: C = 0.9 x + 54

(a) If her pralines are sold for $1.8 each, determine Yasmine’s revenue ® and profit (P) as functions of x.

( B) What is Yasmine’s profit, if she makes and sells 150 pralines each weekend?

© How many pralines must Yasmine make and sell to break even?

(d) If her goal is to earn a profit equal to 25% of her revenue, how many pralines will she have to sell?

(e) If her goal is to earn a profit of $0.40 per praline, how many pralines should she make and sell?

(f) Sketch a graph of Yasmine’s cost, revenue, and profit functions, and identify the break-even point.

Thank you

May Allah bless you all! :) <3

Basic Concepts in Break Even Analysis

Cost:

varible costs= unit cost x quantity produced

revenue= price x quanitity produced(sold)

profit=revenue - cost

BEP

Profit=revenue-cost=0

Edited September 17, 2011 by greenolive

[shiasoldier786]

a) R=1.8x

P= 1.8x-0.9x-54

b} Profit each weekend: $81

c) Break Even: FC/Contribution... 54/0.9= 60

d) Profit being 25% of revenue... 1.8x-0.9x-54=1.8x*0.25...

1.8x-0.9x-54=0.45x

1.8x-.9x-.45x-54=0

0.45x=54..... x=54/.45= 120

e) Profit of 40 cent per item: 1.8x-.9x-54=0.4x..... 0.5x-54=0..... x=54/.5=108

What did u get?

Edited September 17, 2011 by shiasoldier786

[struggling_On]

a) R=1.8x

P= 1.8x-0.9x-54

b} Profit each weekend: $81

c) Break Even: FC/Contribution... 54/0.9= 60

d) Profit being 25% of revenue... 1.8x-0.9x-54=1.8x*0.25...

1.8x-0.9x-54=0.45x

1.8x-.9x-.45x-54=0

0.45x=54..... x=54/.45= 120

e) Profit of 40 cent per item: 1.8x-.9x-54=0.4x..... 0.5x-54=0..... x=54/.5=108

What did u get?

100 % agree............

[Legendary]

a) R=1.8x

P= 1.8x-0.9x-54

b} Profit each weekend: $81

c) Break Even: FC/Contribution... 54/0.9= 60

d) Profit being 25% of revenue... 1.8x-0.9x-54=1.8x*0.25...

1.8x-0.9x-54=0.45x

1.8x-.9x-.45x-54=0

0.45x=54..... x=54/.45= 120

e) Profit of 40 cent per item: 1.8x-.9x-54=0.4x..... 0.5x-54=0..... x=54/.5=108

What did u get?

Thank you so much, is it possible if you can show me how you did b and c?

[shiasoldier786]

For B, just substitute the150 in for x into the formulae, because that is the quantity you are looking to sell, and you'll get $81.

For C, the formulae for finding the Break Even Point is... Fixed Cost/Contribution(selling price-variable cost)... 54/(1.8-0.9)= 60

[Mustafa]

If it is not inconvenient: Can you just write down the solution to B with details? ... I'd appreciate a small lesson on quantity/quality and numbers.

Peace