a. | Revenue function: |
R(x) = 550*x | |
Revenue = 550 x 43 = $23650 | |
b. | Profit function: |
P(x) = R(x) - C(x) | |
P(x) = [550*x] - [240x + 1560] | |
P(x) = [550 x 58] - [(240 x 58) + 1560] = 31900 - [13920 + 1560] = 31900 - 15480 = $16420 | |
c. | Break-even point (in units) = Fixed costs/Contribution per unit |
Fixed costs = 1560 | |
Contribution margin per unit = Sales price - Variable costs = 550 - 240 = 310 | |
Break-even point = 1560/310 = 5.03 units |
Kindly round off as required since no instructions provided regarding the same.
5 Q080 Break Even Analysis Page 159 Total Cost variable cost + fixed cost Break even...
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