Question: Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph. (a) Give the equation to describe

Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph.

(a) Give the equation to describe total revenue for x units per year.

(b) Give the equation to describe total costs for x units per year.

(c) What is the "breakeven" level of x in terms of costs and revenues?

(d) If you sell 1500 units this year, will you have a profit or loss? How much?


Consider the accompanying breakeven graph

$40r $35 S30 $25 $20 $15 $10 Total Revenue Total Cost 0 250 500 750 1000 1250 1500 1750 Output (nts/year)

Step by Step Solution

★★★★★

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

x annual production a Total Revenue 2000001000 x 200 x b Total Cost 100000 100000100... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

7-B-E-M (45).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Answer the following questions as they relate to implied volatilities. a. Can implied volatilities be expected to vary for options on the same stock with the same exercise price but different...

Q:

FE-Type questions 12. Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph. Break-Even analysis is performed using the...

Q:

Describe 3 different Financial Instruments as they pertain to this specific investment opportunity, outlining the advantages and disadvantages of each from the perspective of a VC investor Company...

Q:

Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph. (a) Give the equation to describe total revenue for x units per year. (b)...

Q:

Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for...

Q:

Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for...

Q:

Consider the accompanying breakeven graph for an investment, and answer the following questions.(a) Give the equation for total revenue for x units per year. (b) Give the equation for total costs for...

Q:

Q . 1 Consider the accompanying break - even graph for an ice cream factory, and answer the following questions as they pertain to the graph. ( a ) Give the equation for total revenue for x units per...

Q:

Explain the following You may need to use the appropriate appendix table or technology to answer the question. Last year, 43:4 of business owners gave a holiday gift to their employees. A survey of...

Q:

Solve the following (b) Assume these firms behave like price takers, how much will they produce and what price will they charge? Draw the outcome on a graph. What is the individual firms producer...

Q:

If X is a random variable that represents the weight of food cans produced by one of the Institutions, and X was a subject to a normal distribution of 150 grams, a sample size of 9 cans is taken from...

Q:

The purchases journal for Crystal View Window Cleaners Inc. is shown below. The accounts payable account has a January 1, 2012, balance of $365 of an amount due from Little Co. There were no payments...

Q:

Which formula correctly calculates Net Assets? Liabilities - Assets Assets - Equity Revenue - Expenses Assets - Llabilitic

Q:

1)State the time-dependent Schrodinger equation in three dimensions. State the meaning of all the terms in the equation. 2)Using the separation of variables technique, derive the time-independent...

Q:

Given g(2) = +4. where A > 1 is a constant. a) show that g(x) has a unique fixed point in the interval VA/2, /2A, b) How many iterations are necessary to perform to achieve the accuracy 10 2 Use the...

Q:

If 0.10 M aqueous solutions are prepared of each of the following acids, which produces the solution with the lowest pH? Oa. hypobromous (HOBr), Ka 2.5 x 10-9 b. benzolc acid, Ka - 6.3x 10-5 OC...

Q:

Find the local and absolute extreme values of the function on the given interval. f(x) = 3x 4/x 2 + 1 [2, 2]

Q:

You are told that the present worth of an increasing geometric gradient is $88,146. If the cash flow in year 1 is $25,000 and the gradient increase is 18% per year, what is the value of n? The...

Q:

The amount of money that Diamond Systems can spend now for improving productivity in lieu of spending $30,000 three years from now at an interest rate of 12% per year is closest to: (a) $15,700 (b)...

Q:

A manufacturing company spent $30,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4200 per year, the length of time it would take for the company to recover its...

Q:

Multiple Choice Questions 1. Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $22,000 for year 1...

Q:

A small construction company is considering the purchase of a used bulldozer for $61,000. If the company purchases the dozer now, the equivalent future amount in year 4 that the company is paying for...

Q:

"Boy, this is all so confusing," said Ryan as he stared at the papers on his desk. If only I had taken the advice of my finance instructor, I would not be in such a predicament today." Ryan Daniels,...