MAT 540 Week 1 Homework-CH 1 and 11
A homework assignment covering mathematical problem-solving techniques.
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MAT 540 WEEK 1 Homework-CH 1 and 11
Attached is a template for you to use for Homework 1.
Note that I expect you to show the work in your calculations and then insert your
numerical answers in the yellow boxes.
I will not give you credit for your solutions (even partial credit) unless I can see your work.
As a worst case, you can do you work on paper, scan it and send the scanned work plus the
Excel template to me for grading.
Chapter 1, Problems 2, 4, 12, 14, 20, 22
2. The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is
$60,000.The variable cost of recapping a tire is $9.The company charges $25 to recap a tire.
a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.
Total cost = $60,000+ $9*12,000 = $168,000
Total revenue = $25*12,000= $300,000
Total Profit = Total revenue - Total cost = $300,000- $168,000= $132,000
b. Determine the annual break-even volume for the Retread Tire Company operation.
If X is the annual break even quantity then,
Total cost for quantity X = Total Revenue for Quantity X
$60,000+ $9*X = $25 X
=> (25-9) X = $60,000
=> X = $60,000/(25-9) = 3,750
4. Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is
$25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for
$0.40 per pound. Determine the monthly break-even volume for the company.
If X is the monthly break even quantity then,
Total cost for quantity X = Total Revenue for Quantity X
$25,000+ $0.15*X = $0.40 X
=> (0.40-0.15) X = $25,000
Attached is a template for you to use for Homework 1.
Note that I expect you to show the work in your calculations and then insert your
numerical answers in the yellow boxes.
I will not give you credit for your solutions (even partial credit) unless I can see your work.
As a worst case, you can do you work on paper, scan it and send the scanned work plus the
Excel template to me for grading.
Chapter 1, Problems 2, 4, 12, 14, 20, 22
2. The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is
$60,000.The variable cost of recapping a tire is $9.The company charges $25 to recap a tire.
a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.
Total cost = $60,000+ $9*12,000 = $168,000
Total revenue = $25*12,000= $300,000
Total Profit = Total revenue - Total cost = $300,000- $168,000= $132,000
b. Determine the annual break-even volume for the Retread Tire Company operation.
If X is the annual break even quantity then,
Total cost for quantity X = Total Revenue for Quantity X
$60,000+ $9*X = $25 X
=> (25-9) X = $60,000
=> X = $60,000/(25-9) = 3,750
4. Evergreen Fertilizer Company produces fertilizer. The company’s fixed monthly cost is
$25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for
$0.40 per pound. Determine the monthly break-even volume for the company.
If X is the monthly break even quantity then,
Total cost for quantity X = Total Revenue for Quantity X
$25,000+ $0.15*X = $0.40 X
=> (0.40-0.15) X = $25,000
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Document Details
University
Ashford University
Subject
Mathematics