Problem I. Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of the equipment is $350.00. The materials used in one shirt costs $8.00, and Gina can sell these for $15.00 each."
1. If Gina sells 20 shirts, her total revenue will be _________.
2. If Gina sells 20 shirts, her total variable cost will be _________.
3. Gina must sell __________ shirts to break even. (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points.)
4. Gina's total revenue at the breakeven point of output is __________ . (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points).
Problem II: Farris Billiard Supplies sells all types of billiard equipment, and is considering manufacturing their own brand of pool cues. Mysti Farris, the production manager is currently investigating the production of a standard pool cue that should be very popular. Upon analyzing the costs, Mysti determines that the materials and labor cost for each cue is $25, and the fixed costs that must be covered is $2400 each week.
5. If Mysti sells 20 units at a price of $40 each, her total revenue will be _________.
6. If Mysti sells 20 cues, her total variable cost will be _________.
7. Mysti must sell ________ units to break even. (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points).
8. Mysti's total revenue at the breakeven point of output is ________ . (Hint: Please enter a single number only and round it to an integer if necessary. No decimal points).