The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $35 and has a variable cost of$22. There are $97,500 in fixed costs involved in the production process. Compute the break-even point in units.

The Saluki Company specializes in making fraternity and sorority T-shirts for the college market. Due to the high setup costs for each batch printed, Saluki holds the T-shirt requests until demand is approximately 100 shirts. At that point Saluki will schedule the setup and production of the shirts. For rush orders, Saluki will produce smaller batches for an additional charge of $175 per setup. Budgeted and actual costs for the production process for 2017 were as follows:$

$$\begin{matrix} \text{ } & \text{Static-Budget Amounts} & \text{Actual Results}\\ \text{Number of shirts produced} & \text{125.000} & \text{114.000}\\ \text{Average number of shirts per setup} & \text{100} & \text{95}\\ \text{Hours to set up machines} & \text{5} & \text{5.2}\\ \text{Direct variable cost per setup-hour} & \text{\$ 30} & \text{\$ 32}\\ \text{Total fixed setup overhead costs} & \text{\$ 56.250} & \text{\$ 56.000}\\ \end{matrix}$$

$1. What is the static budget number of setups for 2017? 2. What is the flexible-budget number of setups for 2017? 3. What is the actual number of setups in 2017? 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? 5. Does Saluki's charge of$175 cover the budgeted direct variable cost of an order? The budgeted total cost? 6. Fior direct variable setup costs, compute the price and efficiency variances. 7. For fixed setup overhead costs, compute the spending and the production-volume variances. 8. What qualitative factors should Saluki consider before accepting or rejecting a special order?

Write the revenue function, R. A company that manufactures small canoes has a fixed cost of $18,000. It costs$20 to produce each canoe. The selling price is $80 per canoe. (In solving this exercise, let x represent the number of canoes produced and sold.)

The following exercise demonstrate applications of linear functions. Analyze the information given to determine the equation of the relevant line or lines. Use the linear equation to determine the requested information. The Tie Shop sells its ties for $21 each. The shop has weekly fixed costs of$845, and each tie costs $12. How many ties must be sold to make a profit?

Oak Island Amusements Center gives the following data on the costs of maintenance and the number of visitors for the last three years:

Required
Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor.

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. Discuss the pros and cons of each loan.

You need a $\$ 60,000$ loan.

$\quad$ Option $1$: a $30$-year loan at an $\mathrm{APR}$ of $7.15 \%$

$\quad$ Option $2$: a $15$-year loan at $6.75\%$

A company that manufactures running shoes has a fixed monthly cost of $300,000. It costs$30 to produce each pair of shoes. What is the horizontal asymptote for the graph of the average cost function,

$$\overline { C } ?$$

Describe what this represents for the company.

Compare the monthly payments and total loan costs for the following pairs of loan options. Assume that both loans are fixed rate and have the same closing costs. Discuss the pros and cons of each loan.

You need a $\$ 75,000$ loan.

$\quad$ Option $1$: a $30$-year loan at an $\mathrm{APR}$ of $8 \%$

$\quad$ Option $2$: a $15$-year loan at $7 \%$

The manufacturing costs of Lightfoot Industries for three months of the year follow:

$$\begin{array}{lrl} &\underline{\textbf{Total Costs}}&\underline{\textbf{Units Produced}}\\ \text{January}&\$640,000&\text{30,000 units}\\ \text{February}&900,000&40,000\\ \text{March}&350,000&12,500\\ \end{array}$$

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

A hand tool manufacturer produces a product for which the variable cost is $\$ 5.35$ per unit and the fixed costs are $\$ 16,000$. The company sells the product for $\$ 8.20$ and can sell all that it produces. Find the total cost as a function of $x$, the number of units produced.

Under absorption costing, a company had the following per unit costs when 10,000 units were produced.

$$\begin{array}{lr} \text{Directlabor}&\text{\$ 2}\\ \text{Direct materials}&\text{3}\\ \text{Variable overhead}&\underline{\text{\hspace{5pt}4}}\\ \text{Total variable cost}&\text{9}\\ \text{Fixed overhead (\$50,000/10,000 units)}&\underline{\text{\hspace{5pt}5}}\\ \text{Total product cost per unit}&\underline{\underline{\text{\$14}}}\\ \end{array}$$

The company sells its product for $50 per unit. Due to new regulations, the company must now incur$2 per unit of hazardous waste disposal costs and $8,500 per year of fixed hazardous waste disposal costs. Compute the contribution margin per unit. including hazardous waste disposal costs.

Donner Corporation estimates that to produce wooden baseball bats, it must spend $\$ 38,160$ in fixed costs. The company estimates that the variable costs will be $\$ 14.89$ for each bat. The selling price of the bats is to be $\$ 50.89$ each. a. At that selling price, how many of the bats must be sold to break even? b. To break even, the company must have a sales income of what amount from this operation?

If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is$45, and tickets sell for $75, what is the breakeven point in units? a. 1,200 passengers b. 2,000 passengers c. 225,000 passengers d. 3,000 passengers

Story Park competes with Splash World by providing a variety of rides. Story sells tickets at $50 per person as a one-day entrance fee. Variable costs are$10 per person, and fixed costs are $240,000 per month. Requirement

1. Compute the number of tickets Story must sell to break even. Perform a numerical proof to show that your answer is correct.