A). Price – Total Cost = Profit B). Profit Margin = Profit OR Price - l Total Cost Total

[answerhappygod]

A). Price – Total Cost = Profit
B). Profit Margin= Profit OR Price - l
TotalCost Total Cost
C) Total Revenue = ( unitssold)(price/unit)
D)) Total Cost = (unitsproduced)(cost/unit)
E) Breakeven: Total Revenue = TotalCost
1). Use the figures below for problems:
Costs:
Labor ………. 15
Materials …… 12.75
Utilities …….. 5.25
Transportation.. 18
(a). To insure a profit of at least 25% of costs what mustthe minimum price be?
(b) If materials is my variable cost what is my totalfixed cost?
(c) If utilities increase by $1.75 what will be the newprofit margin if price remains the same?
(d) Using the new utility cost in (b) how many units mustbe produced to break even where total revenue is $17,500.00?