linear equation
In its first year, “ABOL BUNA” Company had the following experience. Sales = 25,000 units Selling price = Birr 100
Total variable cost = Birr 1,500,000 TFC = Birr 350,000
Required:
a) Develop revenues, cost, and profit functions for the company in terms of quantity.
_
b) Find the break-even point in terms of quantity.
c) Convert the cost equation in terms of quantity in to a cost equation in terms of revenue.
_
d) Find the break-even revenue.
_
e) If profit had been Birr 500,000 what would have been the sales volume (revenue) and the quantity of sales.
_
f) What would have been the profit if sales were Birr 2,000,000?
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