need this also

here is the attachment for hsm260 final

Worksheet

Step 1

We have pieces of information in the story problem

· Their current number of subscribers is 525.

· The newsletter coordinator gets $6000 per year in salary (fixed costs)

· The assistant coordinator gets $3900 per year in salary (fixed costs)

· TOGETHER, THE SALARY FOR THE NEWSLETTER FOLKS – $9900

· They can handle 650 newsletters

· They have decided upon a new subscription price of $20

· The variable costs of producing the newsletters has risen to $4.50

Step 2

Let’s figure the BEP

The formula is

Px = A + Bx

X=Unit cost or price

A=fixed costs

B=Variable costs

20x = 9900 + 4.50x

(THE NEW PRICE OF THE NESLWETTER-$20 = THE FIXED COST OF THESE TWO COORDINATORS-$9900 + THE VARIABLE COSTS OF THE NEWSLETTER PRODUCTION-$4.50)

20x = 9900 + 4.50 x

15.50x = 9900

X = 9900/15.50

X = 639 (rounded)

They will need to produce 639 papers to break even. They can handle and do 650 papers. Hence they will have 11 papers left over. That is not a bad surplus.