A company achieved annual sales of 1,000 units last year, charging $25 for each unit. It...

 

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A company achieved annual sales of 1,000 units last year, charging $25 for each unit. It costs the company $10 to produce each unit (average variable cost) whilst fixed cost was $5,000. a) Calculate the total revenue received and total costs incurred last year. Total revenue = $ Total costs = $ b) How much profit did the company make last year? Profit = $ Expecting fixed cost to increase by 20% and average variable cost to increase 30% this year, the company increases the price it charges each unit to $28. c) Calculate the fixed cost, average variable cost, total costs and total revenue this year, assuming that the company maintained its annual sales of 1,000 units this year. Fixed cost = $ Average variable cost = $ Total costs = $ Total Revenue = $ c) How much profit did the company make this year? What is the percentage change in annual profit? Profit this year = $| Percentage change = % Write your answer in a whole number or if it is a decimal number in 2 d.p and do not put the $ sign, unit and comma. A company achieved annual sales of 1,000 units last year, charging $25 for each unit. It costs the company $10 to produce each unit (average variable cost) whilst fixed cost was $5,000. a) Calculate the total revenue received and total costs incurred last year. Total revenue = $ Total costs = $ b) How much profit did the company make last year? Profit = $ Expecting fixed cost to increase by 20% and average variable cost to increase 30% this year, the company increases the price it charges each unit to $28. c) Calculate the fixed cost, average variable cost, total costs and total revenue this year, assuming that the company maintained its annual sales of 1,000 units this year. Fixed cost = $ Average variable cost = $ Total costs = $ Total Revenue = $ c) How much profit did the company make this year? What is the percentage change in annual profit? Profit this year = $| Percentage change = % Write your answer in a whole number or if it is a decimal number in 2 d.p and do not put the $ sign, unit and comma.

Answer rating: 100% (QA)

a Calculate the total revenue received and total costs incurred last year Total revenue Number of un... View the full answer