Question

1.For a table manufacturing company, selling price for a table is $60.00 per Unit, Variable cost is $18.00 per Unit, labor charge is $10.91 per Unit, rent is $616.00 per month and transportation is $10 per 10 tables. If 50 tables are sold in a month how much is the fixed cost for that month?

2.You run a school in Florida. Fixed monthly cost is $5,355.00 for rent and utilities, $6,008.00 is spent in salaries and $1,374.00 in insurance. Also every student adds up to $92.00 per month in stationary, food etc. You charge $689.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,785.00, salaries to $6,980.00 and insurance to $2,337.00 per month. Variable cost per student will increase up to $187.00 per month. However you can charge $1,149.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Please, do all of them and show processes

Answer 1