A plant hire company purchases a mobile crane for 120,000. It plans to charge 190 a day for hiring out the crane. For each day on which it is hired out the company expects to incur variable costs of 40. 

 (a) Work out how many days the company needs to hire out the crane in order to break even. 

b) If the variable costs are actually 55 and the hire charge has to be reduced to 180 per day, what is the new breakeven point?

Answer rating: 100% (QA)

a Given Purchase cost of the crane 120000 Daily hire charge 190 Variable costs per day 40 To find th... View the full answer