Memex Corp

question 8

Essay

Memex Corp. manufactures memory expansion boards for laptop computers. The average selling price of its finished product is $180 per unit. The average variable cost per unit is $110. Memex incurs fixed costs of $1,260,000 per year.
a) What is the break-even point in unit sales per year?
b) What sales revenue must Memex achieve in order to break even?
c) What will be the company's profit or loss at the following levels of sales for a year: 20,000 units? 17,500 units?

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Definitions:

Structural Isomers

Molecules with the same molecular formula but different arrangements of atoms, resulting in different properties.

Valence Electrons

The electrons in the outermost shell of an atom, which determine the atom's chemical properties and its ability to form bonds.

Hydrogen Bonds

Weak bonds between a hydrogen atom in one molecule and an electronegative atom (often oxygen or nitrogen) in another, important in the structure of water and DNA.

Carbon Atom

The fundamental chemical element with symbol C, essential to all known life forms and the basis of organic chemistry.