SOLUTION: ) The Company ABC produces a product for which the variable cost per unit is €6 and the fixed cost is €80,000. The price of the product is €10 per unit.
a) Determine the n
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a) Determine the n
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Question 1198514: ) The Company ABC produces a product for which the variable cost per unit is €6 and the fixed cost is €80,000. The price of the product is €10 per unit.
a) Determine the number of units that must be sold for the company to earn a profit of €60,000
b) Find the break-even point of the company.
c) What is the quantity of the product which corresponds to a loss of €20,000. Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website! Cost = variable +fixed
let x be the number of units produced to make a profit of 60000
(C) = 80000+6x
(R) = 10x
(P)= 10x -(6x+80000)= 60000
== > 4x 140000
==> x =140000/4
= 35000 units
For breakeven (R)-(C) =0
