1. julie makes and sells shirts for children and adults. she sells the shirts for $20 per unit. material for
the shirts cost $6 each. she has fixed costs per month of $420 and estimates that she can make
and sell 80 shirts each month. how many shirts does julie need to sell to break even?
2. john and his friends have set up a basketball tournament. he can rent a basketball field for a daily
charge of $210 and equipment for $160 per day. if he hires independent umpires, he would need
to pay $260 for the day. he would arrange caps for each player at the cost of $4 each. if john can
get 90 people to participate, what would he have to charge each of them to recover the cost?
3. for the following, perform a break-even analysis showing computation of the
a. contribution margin
b. contribution rate
c. break-even point in units
d. break-even point in dollars
mike is considering working for part-time painters. he would operate as an independent
painter, but the jobs would be given to him by the company. in the company's
advertisement, $120 would be charged for each room painted. the painter would then get
80% of the amount billed. for each job the painter would supply paint and brushes, at a
cost of 40$. each painter must have his or her own ladders, drop cloths, and other tools, at
a cost of $820.
4. jia's friends provide dog washing services. for each dog, supplies cost $4 and wages are $5. to
provide this service, a special room and equipment are needed, at a cost of 400$ per month. jia's
friends maintain an average of 30 dogs washed each month. what must jia's friends charge as a
price for the dog washing service to break even?
5. new time square has set up a booth in a mall to sell calendars during the holiday season. the
company can purchase the calendars for $2.50 each. it plans to set the unit price at $9.90 each.
during the time it is in business, it must rent equipment for $200 per day, and pay wages of $300
per day. answer each of the following question.
a. how many calendars must the company sell each day to break even?
b. if the business puts the calendars on sale at 20% off, what would be the profit if it sold 110
units in a day?
u511003 math for business