PPM FINAL EXAM (BREAKEVEN
ANALYSIS, MEDICATION USE
SYSTEMS ,MEDICATION
ERRORS, SIX SIGMA)
QUESTIONS WITH 100%
CORRECT ANSWERS!!
PPM
Evatee 9/16/24 PPM
,PPM FINAL EXAM (BREAKEVEN ANALYSIS,
MEDICATION USE SYSTEMS ,MEDICATION
ERRORS, SIX SIGMA) QUESTIONS WITH 100%
CORRECT ANSWERS!!
A water bottle company sold 10,000 products at an average price of $5 per
product. The total cost, revenue, and profits for the company are listed below:
- sales revenue: $50,000
- fixed costs: $20,000
- Variable costs: $10,000
- Total Costs: $30,000
- Profit: $20,000
How many products does the company have to sell to break even in 2019?
What is the break even point in dollars? Answer - Variable cost per unit:
10,000 (variable costs) /10,000 (units) = $1 per unit
20,000 +1x = 5x
4x = 20,000
x = 5,000
5,000 x $5 (sale price per product) = $25,000
Break even point:
5,000 units
$25,000
,A water bottle company sold 10,000 products at an average price of $5 per
product. The total cost, revenue, and profits for the company are listed below:
- sales revenue: $50,000
- fixed costs: $20,000
- Variable costs: $10,000
- Total Costs: $30,000
- Profit: $20,000
If the selling price increases to $9 and keep the others the same, will the break
even point change? What is the break even point in units and dollars? Answer
- total revenue = variable costs + fixed costs
Total revenue = sale price x total units sold
variable costs = variable cost per unit x units sold
9x = 1x + 20,000
8x = 20,000
x = 2,500
2,500 (break even units) x 9 (sale price) = $22,500
Break-even point:
2,500 units
$22,500
Suppose you own a toy business of stuffed animal. The fixed costs in total is
$6,000, your variable costs per unit is $25, and your sales price per unit is $50.
What is the break even point in dollars to sell? Answer - 50x = 25x + 6,000
25x = 6,000
, x = 240 units
240 x 50 = 12,000
Break even point:
240 units
$12,000
Suppose you own a toy business of stuffed animal. The fixed costs in total is
$6,000, your variable costs per unit is $25, and your sales price per unit is $50.
How does cutting costs impact your break-even point in dollars? Say your
variable costs decrease to $10 per unit, and your fixed costs and sales price per
unit stay the same. Answer - 50x = 10x + 6,000
40x = 6,000
x = 150 units
150 x 50 = $7500
Break even point:
150 units
$7,500
The fixed costs at Company X are $1 million annually. The main product has
revenue of $8.50 per unit and $4.50 variable cost.
Determine the breakeven quantity per year. Answer - 8.50x = 4.50x +
1,000,000
4x = 1,000,000
x = 250,000
Break even quantity is 250,000 units.
