Question
In: Math
In the Ponderosa Development Corp. (PDC) example, if the land for each house costs $108,100 and...
In the Ponderosa Development Corp. (PDC) example, if the
land for each house costs $108,100 and lumber, supplies, and other
materials cost another $41,200 per house. The company leases office
and manufacturing space for $3,100 per month and their monthly
salaries total to $65,250. Assume that total labor costs are
approximately $26,800 per house. The cost of supplies, utilities,
and leased equipment is $6,650 per month. The one salesperson of
PDC is paid a commission of $3,900 on the sale of each house. The
selling price of each house is $195,000.
(1) Identify all costs and revenue for each house.
(2) Write the monthly cost function c (x), revenue function r (x),
and profit function p (x).
(3) What is the breakeven point (BEP) for monthly sales
of the houses based on the cost, revenue and profit functions
specified in (2)?
(4) What is the monthly profit if 13 houses per month are built and
sold?
(5) What is the monthly profit if the variable cost per
house = $160,500 and PDC built and sold 10 houses per month?
(4) What is the monthly profit if 13 houses per month are built and
sold?
Solutions
milcah answered 4 months agoRelated Solutions
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