Answer to Question #323288 in Financial Math for mafi

Question

11. A manufacturer has a fixed cost of birr 120,000and a variable cost of birr 20 per unit made and sold. Selling

price is birr 50 per unit.

(a) Write revenue, cost and profit equations using C for cost, Q for number of units and P for profit.

(b) Find the breakeven quantity

(c) Find the breakeven Birr volume of sales (revenue)

(d) Compute profit if 10,000 units are made and sold, 100 units are made and sold.

(e) Construct the breakeven chart. Label the cost, revenue and the fixed Cost line and the breakeven point.