Develop revenue cost and profit functions

Reference no: EM132960814

Model examination questions

1. XYZ xompanys xost funxtion for the next four months is
C=500.000+5Q
a) Find the BE dollar volume of sales if the selling price is br.6/unit
b) What would be the companys cost if it decides to shutdoun operations for the next four months
c) If because of strike, the most the company can produce is br.100.000 units, should it shutdown? Why or why not?

2. In its first year "Abol Buna co" had the following experience
Sales= 25,000 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 quanitity
3. Convert the cost equation in terms of quantity in to a cost equation in terms of Revenue
4. Find the brearkeven revenue
5. If profit had been br.500,000 what would have been the sales volume (revenue) and the quantity of sales
6. What would have been the profit if sales are br.2, 000, 000.

3. A small home business set up with an investment of $10,000 for equipment.the business manufactures a product at a cost of br.0.64 per unit. If the product sales for br. 1.20per unit how many units must be sold before the business breaks even?

4. a retail co.plans to work on a margin of 44% of retail price & to incur other variable cost of 4% it is expected fixed cost of Br.20,000
i.) find the equation relating total cost to sales
ii) Find the profit if sales is br.60, 000
iii) Find the breakeven revenue
iv) if profit is br.15,000 what should be the revenue level?
V ) if you have any one item at a price of br. 15/unit how do you convert the cost equation in terms of recenue in to a cost equation in terms of quantity?

Attachment:- Maths assignment.rar

Reference no: EM132960814

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