Fin-301_tesc_written assignment 5

Feb 3rd, 2012
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Written Assignment #5 Chapter 19 Problem #2 a. Scale of operation #1 4Q = 3,000 + 2.8Q 1.2Q = 3,000 Q = 2,500 Scale of operation #2 4Q = 5,000 + 2.4Q 1.6Q = 5,000 Q = 3,125 b. Scale of operation #1 Sales - $4 x 5,000 = $20,000 Costs - $3,000 + $2.8(5,000) = $17,000 Profit = $3,000 Scale of operation #2 Sales - $4 x 5,000 = $20,000 Costs - $5,000 + $2.4(5

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