The problem that one has before them here is to determine the total costs, revenues, and profits or losses that are applicable to the information presented for the Willow Furniture Company. A secondary part of the problem shown below asks one to determine the break-even quantity for the number of tables that they need to produce to break even. Shown below are the two parts of the question that one must answer in order to get a proper solution to the problem here. (a) The first part of the problem that one would need to solve here is to determine the applicable values for 300 tables sold in an average month. Note that the author mentions in the text a specific formula that one would need to use in order to determine the values required here. To get things going here, this is stated below with the applicable variable definitions:.

1. Chapter 1 Introduction To Management Answer Key
2. Chapter 1 Introduction To Management And Organizations Quiz

Chapter 1 Introduction To Management Answer Key

Chapter 1 Introduction To Management And Organizations Quiz

(1) Where, - Z = the total profit or loss for a specified volume of units, - v = the amount of volume that is examined in the equation, - p = the price of one unit that is being measured here, - c f = the sum of fixed costs for the units produced, and - c v = the sum of variable costs for the units produced. Though this looks like a daunting problem and yucky formula, it really isn’t all that hard once one knows what is going on. From the problem’s text, we know that the fixed costs are $8,000.00 and variable costs are approximately $65.00 per table while the revenues generated per table are $180.00.