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Find the breakeven point in terms of quantity

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Question - In its first year, ABC company had the following experience

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

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

Required -

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

b) Find the Breakeven point in terms of quantity.

c) Convert the cost equation in terms of quantity into 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. What would have been the profit if sales were br. 2,000,000?

Reference no: EM132926265

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