Question: 3: Sample Question: The process of considering fixed costs, variable costs, and expected revenues to determine the viability of an investment in process technologies. BP

3: Sample Question: The process of considering fixed costs, variable costs, and expected revenues to determine the viability of an investment in process technologies. BP or Q = Fc / (R-Vc) Lemonade Stand Example Set up costs= $10 Sale Price/cup of lemonade= $0.50 Cost/cup of lemonade= $0.20 How many cups do you have to sell to break even? $0.50 X Q = $10 + ($0.20 X Q) BP or Q = $10/ ($0.50-$0.20) Answer: BP = 33.33 cups Answer the following questions by using the information provided: 1. Using the equation for breakeven 3.3: R * Q = Fc + Vc * Q R= $25, Fc =

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