Question

A firm manufactures a product that sells for ​$ 12 12 per unit. Variable cost per unit is ​$ 7 7 and fixed cost per period is $ 1900. $1900. Capacity per period is 700 700 units. Perform a​ break-even analysis showing a detailed​ break-even chart. Find the revenue​ function, TR. TR equals = nothing ​(Type an expression using x as the variable. Do not include the​ $ symbol in your​ answer.) Find the cost​ function, TC. TC equals = nothing ​(Type an expression using x as the variable. Do not include the​ $ symbol in your​ answer.) Compute the​ break-even point in units. The​ break-even point is nothing units. ​(Round up to the nearest whole​ number.) Find the​ break-even point in sales dollars. The​ break-even point in sales dollars is ​$ nothing . ​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.) Graph the​ break-even chart. Choose the correct graph below. A. 0 700 0 8400 Number of products Sales $ TR FC TC B/E TVC x y graph Loss Profit B. 0 700 0 8400 Number of products Sales $ TR FC TC B/E B/E TVC x y graph Loss Profit C. 0 700 0 700 Number of products Sales $ TR FC TC B/E B/E TVC x y graph Loss Profit Click to select your answer(s).

Answer 1

Find the revenue​ function, TR. TR =12x

Find the cost​ function, TC. TC =7x+1900

Compute the​ break-even point in units. The​ break-even point is =(1900)/(12-7)=380 units.

Find the​ break-even point in sales dollars. The​ break-even point in sales dollars is ​=380*12=$4560