Question: 3-35 CV observations, he obtained the following information: P analysis. The owner of company Bibi wants to judge its profitability. After an extensive time of
3-35 CV observations, he obtained the following information: P analysis. The owner of company Bibi wants to judge its profitability. After an extensive time of Range (in units (q) Costs 0-30 30-80 80-150 0-100 100-150 $5,000 $7,500 $10,000 100 q Fixed costs Variable costs The selling price per unit (q) is $220 1. What kind of variable costs can you distinguish for Bibi? Explain. 2. What kind of fixed costs are applicable for Bibi? Explain. 3. Draw the CVP graph. 4. Calculate the breakeven point (production/sales). 5. Calculate the breakeven revenue. 6. If the relevant range is 0-80 units, and the actual production and sales is 70 units, calculate the safety margin
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