OneConnect has fixed costs of $792,625. Selling price per unit is $195 and variable cost per unit is $110.
a. How many units must OneConnect sell in order to break even?
b. How many units must OneConnect sell in order to earn a profit of $178,500?
c. A new employee suggests that OneConnect sponsor a company softball team as a form of advertising. The cost to sponsor the team is $4,250. How many more units must be sold to cover this cost?
Bob's Bobcats can make two models of bobcats - the Bill and the Buck. Each Bill sells for $7,500, has $5,000 in variable costs and takes 100 hours to make. Each Buck sells for $14,000, has $9,500 in variable costs, and takes 300 hours to make. Bob's Bobcats can sell all of either unit they can produce. There are only 30,000 labor hours available this month. What model should be produced and how many can be produced to maximize profit?