{"id":1257,"date":"2021-05-17T19:31:52","date_gmt":"2021-05-17T23:31:52","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=chapter&p=1257"},"modified":"2021-06-29T19:00:05","modified_gmt":"2021-06-29T23:00:05","slug":"videos-breakeven-analysis","status":"web-only","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/chapter\/videos-breakeven-analysis\/","title":{"raw":"Videos: Breakeven Analysis","rendered":"Videos: Breakeven Analysis"},"content":{"raw":"Question 1: The Hungry Days Ice Cream Company has fixed costs of $30,000 per month. Each case of ice cream costs $4.50 to make.\r\n\r\n(a)\u00a0\u00a0 Write an equation giving Total Cost as a function of the number of cases of ice cream made.\u00a0 Graph the function in the space below.\r\n\r\n(b)\u00a0\u00a0 The company sells ice cream for $12 per case.\u00a0 Give an equation for the Revenue function and graph the Revenue function below.\r\n\r\n(c)\u00a0\u00a0 Label your graph. Show Profit, Loss and Breakeven.\r\n\r\n[embed]https:\/\/youtu.be\/iJRFWCz81Lw[\/embed]\r\n\r\n(d)\u00a0\u00a0 Calculate the Breakeven point. Express in cases of ice cream, sales dollars and as a percent of capacity if the maximum monthly capacity is 16,000 cases.\u00a0 NOTE:\u00a0 THERE IS A TYPO IN THIS PART THAT I NEED TO FIX IN THE VIDEO:\r\n\r\n[latex]$12x =$30x +$4.50x[\/latex]\r\n\r\n[embed]https:\/\/youtu.be\/7fHGBSiru8s[\/embed]\r\n\r\n(e) \u00a0 Calculate the profit or loss if 4,001 cases are sold\r\n\r\n[embed]https:\/\/youtu.be\/GReXRLUZ2dI[\/embed]\r\n\r\n(f)\u00a0\u00a0 Calculate the profit or loss if 3,250 cases are sold.\r\n\r\n(g)\u00a0\u00a0 The company wants to make a profit of $75,000 this month. How many cases must they sell?\r\n\r\n[embed]https:\/\/youtu.be\/BxvHUuk8Qxo[\/embed]\r\n\r\n(h)\u00a0\u00a0 Hungry Days is considering dropping its prices and would like to make a profit of $82,000 by selling 16,000 cases.\u00a0 What should the new price be?\u00a0 What is the breakeven in units?\r\n\r\n[embed]https:\/\/youtu.be\/T2ksxY_QX60[\/embed]\r\n\r\n \r\n
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  1. Rain City Umbrellas does a thriving business in selling umbrellas.\u00a0 Each month they spend $1,057 on rent for their prime umbrella kiosk, and $2,000 on a salary for their salesperson.\u00a0\u00a0 They buy umbrellas wholesale for $7.50 per umbrella.\u00a0 They then sell each umbrella for $26 to wet tourists.\u00a0 Find their breakeven point in sales.<\/li>\r\n<\/ol>\r\n[embed]https:\/\/youtu.be\/xBiaueYkSDc[\/embed]\r\n

    Using the BAII Plus for Breakeven Analysis<\/h2>\r\n[embed]https:\/\/youtu.be\/M1FGkdmd8jc[\/embed]","rendered":"

    Question 1: The Hungry Days Ice Cream Company has fixed costs of $30,000 per month. Each case of ice cream costs $4.50 to make.<\/p>\n

    (a)\u00a0\u00a0 Write an equation giving Total Cost as a function of the number of cases of ice cream made.\u00a0 Graph the function in the space below.<\/p>\n

    (b)\u00a0\u00a0 The company sells ice cream for $12 per case.\u00a0 Give an equation for the Revenue function and graph the Revenue function below.<\/p>\n

    (c)\u00a0\u00a0 Label your graph. Show Profit, Loss and Breakeven.<\/p>\n