How do you convert the cost equation in terms of revenue

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Mathematics For Management And Business Mathematics

Question 1. Thomas Private Limited Company is about to start production of new products to sell to customers. Before the start of the new production, it costs the company S 200,000 to construct the factory's building. Once the construction is over, the cost per unit of production is estimated to be birr 20. Upon selling, the company will incur a 20% commission expense. Moreover, the price per unit of products is decided to be Ilia 50.

Question 2. XYZ company's cost function for the next four months is C = 500,000 + 5Q
I. Find the BE dollar volume of sales if the selling price is br. 6 / unit.
II. What would be the company's cost if it decides to shut down operations for the next four months.
III. if, because of strike, the most the company can produce is 100,000 units, should it shut down? Why or why not?

Question 3. 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:
I. Develop Revenue, cost & profit functions for the co. in terms of quantity.
II. Find the Breakeven point in terms of quantity
III. Convert the cost equation in terms of quantity in to a cost equation in terms of revenue.
IV. Find the Breakeven revenue
V. If profit had been br. 500,000, what would have been the sales volume (revenue) & the quantity of sales?
VI. What would have been the profit if sales are br. 2,000,000?

Question 4. 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. 1.20 per unit how many units must be sold before the business breaks even?

Question 5. A retail co. plans to work on a margin of 44% of retail price & to incur other Variable Cost of 4%. If is expected Fixed cost is Br. 20,000,
I. Find the equation relating Total Cost to sales
II. Find the profit if sales are Br. 60,000
III. Find the breakeven revenue
IV. If profit is Br. 15,000, what should be the revenue levels?

If you have any one item at a price of Br 15/unit how do you convert the cost equation in terms of revenue in to a cost equation in terms of revenue in to a cost equcation in terms of quantity?

Reference no: EM133195842

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