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1. Woodburn Ltd. makes a television table that sells for $50 per unit. It has variable costs of $30 per unit and incurs fixed costs of $100,000 per period. Construct the break-even chart for this operation and determine the sales value that the firm will have to reach if it is to make $20,000 profit per period. Fully label your diagram.
2. A company makes a product with a selling price of $20 per unit and variable costs of $12 per unit. The fixed costs for the period are $40,000. What is the required output level to make a target profit of $10,000?
3. A sampling plan is desired to have a producer's risk of 0.05 at AQL = 0.9 percent and a consumer's risk of 0.10 at LQL = 6.5 percent nonconforming. find the single sampling plan that meets the consumer's stipulation and comes as close as possible to meeting the producer's stipulation.
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