## How many books must he sell to break even? Also calculate the breakeven in dirham.

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##### Description

Two problem solving under the subject of Quantitative Methods for Decision-Making

Problem 2

After graduating from AUD, Salman plans to start a book publishing company in the Media City. He did some research and found that the printer will cost Dh 230,000. He estimated that the variable cost per book is Dh 170 and the selling price is Dh 390.

a. How many books must he sell to break even? Also calculate the breakeven in dirham.

b. In addition to the costs given above, if he wants to pay himself a salary of Dh 15,400 per year, what is her breakeven point in units and dirham?

c. In the first three months of his business, he sold 400 books. Suddenly the printer breaks down. He spent Dh 25000 to fix the printer.  In addition to 400 books sold, how many more books she should sell to breakeven? Assume that this part of the question is independent, and she does not draw any salary.

Problem 8

A furniture store makes tables and chairs from plywood and glass. The store has 30 units of plywood, 24 units of glass. Each table requires 7 units of plywood three units of glass, whereas each chair requires three units of plywood and two units of glass. The demand for chairs is between 2 and 4.  The ratio between the table and chair is at least 1 to 2. A table earns \$225 in profit and a chair, \$145. The store also wants a minimum profit of \$5000. The store wants to determine the number of tables and chairs to make in order to maximize profit. Formulate a linear programming model for this problem