Tuesday, October 4, 2011

Contest #12

Bigby Co. & Figetz Inc. are manufacturing competitors. They each sell their widgets for $45.00 a piece. Bigby's fixed costs are $101,900 a month. Figetz's fixed costs are 21.1% lower than Bigby's. Per widget, Figetz has a variable cost of 25.75% of the sale price. The cost is 3.5 percentage points more than Bigby's variable costs. Last month, Bigby produced and sold 5,123 widgets. Figetz produced and sold 145 more widgets than Bigby.

Who made more profit and what was the % difference from the manufacturer who made the lower profit?

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