| Problem Assignments: Week 8 |
| Assigned |
| Problems |
| 1 | Ann Page Co. … fixed costs $30,000 per year. Variable costs per unit are $17. Sales price per unit is $30. |
| a) | What is the contribution margin of the product? |
| b) | Calculate the breakeven point in unit sales and dollars. |
| c) | What is the operating profit (loss) at: |
| | i) 1,500 units per year? |
| | ii) 3,600 units per year? |
| d) | Plot a breakeven chart using the foregoing figures. |
| 2 | Mrs. Jones owns 100 shares of stock in Daimler-Benz valued at 16.5 Euros per share. What is the value in $U.S. of her stock if: |
| a) | 0.90 | € = $1 |
| b) | 0.70 | € = $1 |
| c) | 1.20 | € = $1 |
| 3 | John is planning on purchasing his German dream car for | | | | | 65,000 | Euros |
| | How much does he need in $U.S. if there are | | | | 0.98 | Euros to the $U.S.? |