ITT: Nikose missed class, isn't sure on his math homework.

[Nikose Tyris]

So, I missed my math class last week. I got a handout at noonish today and told to finish it and hand it in by 6.

...I have no idea what I'm doing. It's asking me about Break-Even Points, and I'm feeling okay with it- but I was wondering if anyone would be okay with checking my work for me?

I'm not asking anyone to do my homework, but if someone could just look at my answers and say "That looks right" I'd be greatful.

I'll post those right here under a big swap tag.


BMAT 110 Breakeven Take Home Quiz Form C
1) Market research for a new product indicates that the product can be sold for $185 per unit.
Cost details are as follows:
Sale price / unit - $185.00
Variable cost per unit - $95.00
Fixed cost per period - $9450.00
Production capacity per period – 280 units
A) Compute the break-even point in units, dollars, and as a percent of the capacity.
Capacity ( C ) =280
Sale Price ( S ) =$185.00
Variable Costs ( VC ) =$95.00
Fixed Costs ( FC ) =$9450.00
Contribution Margin ( CM ) : S-VC =$90.00
BEP in Units: FC/CM: =105
BEP in $ = (FC/CM)*S: =$19,425.00
BEP % =37.5%


Draw a detailed break-even chart showing cost and revenue lines, the break-even point and profit and loss areas. Use the graph paper provided.

[See Graph Paper]

B) Compute the break-even point in dollars if the selling price is increased by $10 and the fixed costs are reduced by $50.

$9,400/$100.00*195.00 = $18,330.00


C) Compute the break even point in units if the variable cost per unit is increased by 5% and the fixed cost is increased by $268.50.

$95+$4.75=$99.75
$9450+$268.50=$9718.50
BEP point in Units: 102.03


2) A firm manufactures a product which sells for $40 a unit. The variable cost consists of two parts: The variable manufacturing cost is $22.50 per unit, and the selling expense is $4.00 per unit. The fixed cost for the period is $4428.00. Capacity is 800 units per period.

A) Compute the break even point in units and as a percent of capacity.

(I’m cheating to simplify the equation; adding the ‘selling expense of $4 per unit into the VC of $22.50 per unit from the get-go. It should not affect the final answer.)

BEP in units = FC/CM
CM = S-VC = 40-26.50 = 13.50
FC=4428
4428/13.50=328
The Break-Even point in units is 328.

BEP in % = (FC/CM)/C*100
% = (4428/13.50)/800*100
As a percent of the capacity, the break-even point is 41%.

B) Determine the break-even point in units if the fixed cost is decreased by $558 and the variable manufacturing per unit is increased by 10%.
(The variable increase is $24.75. Adding the $4 in, is $28.75)

FC/CM = BEP in Units
28.75/(S-VC) = BEP in Units
28.75/(40-28.75)=BEP in Units
28.75/11.25 = 344

The break even point in units is 344.

[Geminex]

Huh. Okay, that looks interesting. I haven't done this mathematically before, but we did economies of scale in eco.

1)
A) looks fine.
B) looks fine.
C)...
$95+$4.75=$99.75
$9450+$268.50=$9718.50
BEP point in Units: 102.03

Ergo...

CM= 185 - VC(99.75) = $85.25
9718.50/85.25=114

Or did I miss something here?


I'll do 2 in a bit, got some stuff to do right now. Hope that helps.

[Nikose Tyris]

...And this is why I asked for help. Thanks Gem; I screwed that one up. I wonder if that means question 2 has the same mistake...

[Geminex]

No problem. I don't see anything wrong with question 2.
Just out of curiosity, what math class is this? This seems pretty practical, not what I'm used to.

[Seil]

I just want to state that you guys are probably computers. Something at one of those fancy schools, like Princeton or Harvard. Regular people math is just so much more simple than that.

[Nikose Tyris]

This is BMAT 100, or "Business Mathematics" or "Mathematics of personal finance".

You're right, it's pretty straightforward, but I'm kind of rusty.

[Professor Smarmiarty]

Good, now do it in base x !

[Geminex]

Shush, we are busy calculating at what quantities to produce in order to best exploit the common worker.

[Melfice]

I just want to state that you guys are probably computers. Something at one of those fancy schools, like Princeton or Harvard. Regular people math is just so much more simple than that.

Actually, we did this in Economics back at high school I think. Third or fourth year (out of five). Or was that actually in math class? Hmmm...
Regardless, we had it somewhat toned down, I do believe, but remarkably similar.

It really shouldn't be too hard once you figure it out.
Not that I'm going to be hazarding a try. This is ancient history, as far as I'm concerned.

[Nikose Tyris]

Insult to Injury: Completed homework, turned it in.

First response: "We didn't do contribution margin in class. The equation you were using was wrong." I might be getting a 0 for being MORE correct then I needed to be. :/

hate when that happens.

[Professor Smarmiarty]

That shouldn't happen at uni because I've been a marker and you always get some students who are in advance of the course and you are ready for it.

[Melfice]

Insult to Injury: Completed homework, turned it in.

First response: "We didn't do contribution margin in class. The equation you were using was wrong." I might be getting a 0 for being MORE correct then I needed to be. :/

hate when that happens.

That's bullshit.
If the answer is correct, who the fuck cares how you got to it?

[Archbio]

Every math teacher in the cosmos.

They don't teach you kind after kind of progressively less inadequate equations for you to just skip to the end.

[Professor Smarmiarty]

Every math teacher in the cosmos.

They don't teach you kind of after kind of progressively less inadequate equations for you to just skip to the end.

I've never been marked wrong for getting questions right and as a marker I've never marked people wrong if they got it right. I think you just annoy your teachers.

[Hatake Kakashi]

I've never been marked wrong for getting questions right and as a marker I've never marked people wrong if they got it right. I think you just annoy your teachers.

Kinda wish you were on this side of the pond then. Most of them over here like to nitpick over every last little detail and make sure you didn't cheat somehow by getting it too right or by doing anything in your head. I experienced that yesterday... we worked over a problem in class where we needed to factor and reduce an expression, apparently I went one step too far. It was absolutely correct, my instructor informed me, but the author of the course wouldn't want to go that far because it included a single fraction (as opposed to the whole damn answer being one).

[bluestarultor]

Yeah, case in point - integration. It's easy to do when you know the trick to it, but they teach you the pulling-teeth method first and won't let you do it the easy way for weeks.

[Professor Smarmiarty]

The easy way to do it is with a computer. We got real annoyed when students did things like that by hand cause it means more marking for everybody. I'm amazed that youget marked down for using the wrong working. Boggled.

[bluestarultor]

The easy way to do it is with a computer. We got real annoyed when students did things like that by hand cause it means more marking for everybody. I'm amazed that youget marked down for using the wrong working. Boggled.

That's totally the standard. All work shown, use only what we tell you, calculators must be board-approved. Literally, they tell you what brands and models of calculators are allowed. Decided by a board.

[Professor Smarmiarty]

Hahaha, that's awesome. I totally reckon the board sits around and chooses obscure hard to find calculators to laugh at students trying to find them or whoever gives them a kickback.... Oh man, I totally got to get that implemented over here.

[bluestarultor]

Hahaha, that's awesome. I totally reckon the board sits around and chooses obscure hard to find calculators to laugh at students trying to find them or whoever gives them a kickback.... Oh man, I totally got to get that implemented over here.

Yeah, generally they're Texas Instruments brand, so kickbacks are pretty much a certainty.

And then you can only have certain models of TI calculator. So if you got a fancy TI-83 for $60 in high school, most of the time, you can eat dirt, because they only let you have a TI-30 XA or TI-30 XAs, which is conveniently in the school store for $30-40.

And then some classes don't allow those, so you need to waste another $10 on a cheap off-brand calculator that's probably pure profit for the school.

[Nikose Tyris]

It's a Texas Instruments BAII Plus.

If you don't have it, you may not write the tests in the course. [I don't mean "You can't use another calculator, I mean they won't even let you write the fuckin' thing with no calculator at all.]

[Melfice]

It's a Texas Instruments BAII Plus.

If you don't have it, you may not write the tests in the course. [I don't mean "You can't use another calculator, I mean they won't even let you write the fuckin' thing with no calculator at all.]

That's retarded.
At our final exams, if you forgot your calculator they just said "Okay, you're right fucked. Go take a seat, and do what you can. Sucks to be you"

There were always your do-overs if you failed. *shrugs*

[Professor Smarmiarty]

At our exams they give you calculator if you forget to bring one. You guys are evil

[Melfice]

At our exams they give you calculator if you forget to bring one. You guys are evil

Well... I think they had a very limited supply of extras.
You'd be surprised how quickly they went through that.

[Nikose Tyris]

At our exams they give you calculator if you forget to bring one. You guys are evil

Smarty, Take me away, carry me to this magical place you call home and keep me safe from the retards of my hemisphere.