Question #77150

A company manufactures and sells bar stools. Manufacturing costs consist of a fixed cost of R 25000 per month and a variable cost of R350.00 per unit. Each unit is sold at R600.00. determine the linear profit equation and what is the break even level. assignment experts

Expert's answer

Linear profit equation is

π=600q-(25000+350q)=250q-25000

Break even level is

q=25000/250=100

π=600q-(25000+350q)=250q-25000

Break even level is

q=25000/250=100

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