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SMATH311LC Enabling Assessment 2
SMATH311LC Enabling Assessment 2
ENABLING ASSESSMENT 2
COST-VOLUME-PROFIT MODELING
Read, understand and solve each item carefully. Show your complete solution on the answer column.
QUESTIONS ANSWERS
1. Micromedia offers computer training seminars on a 1a. C(x)= FC + VC(x)
variety of topics. In the seminars each student works
at a personal computer, practicing the particular C(x)= 9600+(60)(2)(x)
activity that the instructor is presenting. Micromedia is
currently planning a two-day seminar on the use of C(x)=9600+120x
Microsoft Excel in statistical analysis. The projected fee 1b. P(x)= R(x)-C(x)
for the seminar is $600 per student. The cost for the
conference room, instructor compensation, lab P(x)= 600x-(9600+120x)
assistants, and promotion is $9600. Micromedia rents
computers for its seminars at a cost of $60 per P(x)= 480x-9600
computer per day.
1c. P(x)=480x-9600
a. Develop a model for the total cost to put on
the seminar. Let x represent the number of P(30)=480(30)-9600
students who enroll in the seminar.
P(30)=P 4,800
b. Develop a model for the total profit if x
students enroll in the seminar.
1d. Let x be the breakeven point
0= R(x)-C(x)
c. Micromedia has forecasted an enrollment of
0= 480x-9600
30 students for the seminar. How much profit
480x=9600
will be earned if its forecast is accurate?
x=20 students
d. Compute the breakeven point