Answer to Question #330916 in Financial Math for neba

Question

In its first year, “Abol Buna Co” had the following experience

Sales = 25,000 units Selling price = br. 100

TVC = br. 1,500,000 TFC = br. 350,000

Required:

1. Develop Revenue, cost & profit functions for the co. in terms of quantity.

2. Find the Breakeven point in terms of quantity

3. Convert the cost equation in terms of quantity in to a cost equation in terms of

revenue

4. Find the Breakeven revenue