Management Science - Introduction to Quantitative Analysis

How to calculate Total Revenue?

• Price per Unit X Cost per Unit (P x C)

• Price per Unit X Quantity (P x Q)

• Fixed Cost + Variabel Cost x Quantity (FC + VC x Q)

• Total Price - Total Cost

How to calculate Total Cost?

• Price per Unit X Cost per Unit (P x C)

• Price per Unit X Quantity (P x Q)

• Fixed Cost + Variable Cost x Quantity (FC + VC x Q)

• Total Price - Total Cost

How to calculate Profit or Loss?

• Price per Unit X Cost per Unit (P x C)

• Price per Unit X Quantity (P x Q)

• Fixed Cost + Variable Cost x Quantity (FC + VC x Q)

• Total Revenue - Total Cost (TR - TC)

What does it mean if TR > TC ?

• Profit

• Loss

• Break Even Point

What does it mean if TR < TC ?

• Profit

• Loss

• Break Even Point

What does it mean if TR = TC ?

• Profit

• Loss

• Break Even Point

BEP is a condition when?

• TR < TC

• TR = TC

• TR > TC

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold is called as?

• Fixed Cost

• Variable Cost

• Total Cost

A cost that is increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases, is called as?

• Fixed Cost

• Variable Cost

• Total Cost

Ray Bond sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even?

• 3 units

• 30 units

• 5 units

• 50 units