Reference no: EM133046655
Question - In its first year, "Abol buna" Company had the following experience.
Sales = 25,000 units
Selling price = Birr 100
Total variable cost = Birr 1,500,000
TFC = Birr 350,000
Required -
a) Develop revenues, cost, and profit functions for the company in terms of quantity.
b) Find the break-even 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 break-even revenue.
e) If profit had been Birr 500,000 what would have been the sales volume (revenue) and the quantity of sales.
f) What would have been the profit if sales were Birr 2,000,000?
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