The Avigilon Security Company intends to manufacture video security cameras. The cost of acquiring the plant and machinery is £5 million. The average variable cost of producing one of its cameras is estimated to be £80. The company plans to sell them at £170 each.

a) if the company aims to produce 80,000 cameras, what profit should it expect to achieve? [Profit = Total Revenue - Total Cost]

b) How many cameras will the company need to produce and sell to break even? [Note: to break even is to reach the point where Total Revenue = Total Cost].

c) Express the Total Cost and the Total Revenue as functions of the number of cameras (Q) and plot both functions on the same graph. Label the axes and label the functions plotted!

Answer rating: 100% (QA)

SOLUTION a The total cost of producing 80000 cameras would be Total Cost Fixed Cost Variable Cost Fi... View the full answer