- Bus 245 ProfitName __________________________________________ Date _________________(Name and date required only if submitted in hard copy format.)
Scoring RubricEach problem: 1.5 points each.Maximum score: 10.5 / 10.
To receive credit you must show the intermediate results. A correct answer without showing the steps receives zero credit. An incorrect answer showing some progress can receive up to 50% credit for the problem. Typical answer: Profit = 12,000 x ($8 – $5) – $15,000 = $21,000.
1. A manufacturing unit has fixed costs of $120,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 100,000 units per month at $10 each.2. A manufacturing unit has fixed costs of $130,000 per month and variable costs of $6 per unit. Determine the monthly profit if they manufacture and sell 110,000 units per month at $12 each.
3. A manufacturing unit has fixed costs of $140,000 per month and variable costs of $4 per unit. Determine the monthly profit if they manufacture and sell 120,000 units per month at $12 each.
4. A manufacturing unit produces and sells two products. The unit has fixed costs of $50,000 per month. Determine the monthly profit if they sell2,500 items per month of product 1 which has a $9 manufacturing cost and sell for $15.00 each, and4,500 items per month of product 2 which has a $12 manufacturing cost and sell for $27.00 each.(This problem is looking for a single profit answer, not a separate answer for each problem. So sum the profit contributions and subtract the fixed costs one time for a single profit answer.)
5. A manufacturing unit has fixed costs of $170,000 per month and get a markup of $6 on each item sold. Determine the monthly profit if they manufacture and sell 125,000 units per month.
6. A manufacturing unit has fixed costs of $125,000 per month and gets a markup of 30% of manufacturing cost of $12. Determine the monthly profit if they sell 45,000 units per month.
7. A manufacturing unit has fixed costs of $75,000 per month and gets a markup of 40% of the selling price of $20. Determine the monthly profit if they sell 11,000 units per month.
