63 152
Assignments Done
99,1%
Successfully Done
In July 2018

Answer to Question #54324 in Microeconomics for Daniyal Ahmed

Question #54324
The AVC of producing an instrument comes to Rs.2P units and Fixed Cost of Rs.90000. Find the Break even point if the instrument sells for Rs.20 per unit.
Expert's answer
The break-even level or break-even point (BEP) represents the sales amount—in either unit or revenue terms—that is required to cover total costs (both fixed and variable). Total profit at the break-even point is zero.
X = TFC/(P - AVC) = 90000/(20 - 0.2*20) = 90000/16 = Rs 5625

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions