Susan is trying to decide whether or not to attend college during the next 12-week session
Susan is trying to decide whether or not to attend college during
the next 12-week session. She has the following options:
1. Attend college full-time at a cost of $1,200.
2. Attend college part-time at a cost of $500 and work part-time earning $1,800.
3. Work full-time earning $4,500.
What is Susan’s incremental profit if she chooses option 3 over option 2?
Randy’s tireland makes a product that sells for $70 per unit and has $54 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement? (As the question asks “how much loss” you don’t have to put the negative sign. For example, suppose the loss is 100, then write the answer as 100 rather than -100.)
Ritz Furniture has a contribution margin ratio of 0.17. If fixed costs are $172,800, how many dollars of revenue must the company generate in order to reach the break-even point?
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