Write the revenue cost and profit functions

Assignment Help Management Theories

Reference no: EM133125235

Question 1: A sales man earns a weekly basic salary plus a sales commission of 20% of his total sales. When his total weekly sales total br. 1000, his total salary for the week is 400. derive the formula describing the relationship between total salary and sales

Question 2: XYZ company's cost function 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 company's cost if it decides to shut down operations for the next four months
c) If, because of strike, the most the company can produce is br. 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: 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.

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 of Br. 20,000.
i. Find the equation relating Total Cost to sales
ii. ii. Find the profit if sales are Br. 60,000
iii. iii. Find the breakeven revenue

Question 6: A sales man has a basic salary &, in addition, receives a commission which is a fixed percentage of his sales volume. When his weekly sales are Br.1000, his total salary is br. 400. When his weekly sales are 500.00, his total salary is br.300. Determine his basic salary & his commission percentage & express the relationship between sales & salary in equation form.

Question 7: A manufacturing Co. has a Total Fixed Cost of Br. 1000 & a Unit Variable Cost of Br. 4 . If the co. can sell .What it produces at a price of Br.10 ,
a) Write the Revenue, cost & Profit functions
b) Find the breakeven point in terms of quantity and sales volume
c) Show diagrammatically the Total Cost, Total Profit and total Variable Costs

Reference no: EM133125235

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