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Customers-R-Us, LLC had sales and costs as shown below in 2013. All data that is

ID: 1101005 • Letter: C

Question

Customers-R-Us, LLC had sales and costs as shown below in 2013. All data that is be considered is listed. Show how you obtained the answers a What was the profit in 2013 b What is the break even quantity? c If the price, fixed cost and the variable cost per unit stay the same as in 2013, what will the quantity sold have to be to increase profits to $1 million in the coming year? d If the sales quantity is 40,000, and fixed and variable costs stay the same as in 2013, what would the unit price need to be to attain profits of $250,000 in the coming year? Customers-R-Us, LLC had sales and costs as shown below in 2013. All data that is be considered is listed. Show how you obtained the answers a What was the profit in 2013 b What is the break even quantity? c If the price, fixed cost and the variable cost per unit stay the same as in 2013, what will the quantity sold have to be to increase profits to $1 million in the coming year? d If the sales quantity is 40,000, and fixed and variable costs stay the same as in 2013, what would the unit price need to be to attain profits of $250,000 in the coming year?

Explanation / Answer

Time span 10 years MARR 7% Investment Annual Gross Benefits Annual Cost of Operations Electric Cars $80,000 $80,000 $50,000 Home Fuel Cells $150,000 $100,000 $28,000 Coal conversion $100,000 $70,000 $35,000 Oil conversion $90,000 $80,000 $30,000 CO2 capture and storage $120,000 $80,000 $46,000

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