Answer to Question #343659 in Financial Math for Kiya

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:

(a) Develop Revenue, cost & profit functions for the co. in terms of quantity.

(b) Find the Breakeven 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 Breakeven revenue

(e) If profit had been br. 500,000 what would have been the sales volume (revenue) &

the quantity of sales

(f) What would have been the profit if sales are br. 2,000,000?

Answer 1

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