Answer to Question #343659 in Financial Math for Kiya

Question #343659

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?


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