ABC company's cost function for the next four months is C= 500,000 - 5q. Required: a)...

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ABC company's cost function for the next four months is C= 500,000 - 5q. Required: a) The break-even dollar volume of sales if the selling price is Birr 6 per unit. b) What would be the company's cost if it decided to shut down operations for the next four months? c) If, b's of a strike, the most the company can produce is 100,000 units, should it shut down? Why or why not? 3. A retail co plans to work on a margin of 44% of retail price and to incur other variable costs of 4%. If it expects fixed cost of Birr 20,000, Find the equation relating total cost to sales Find the profit it sales are Birr 60,000. e) Find the breakeven revenue. d) If profit is Birr 15,000, what should be the revenue level? e) If the company has only one item at a price of Birr 15 per unit, how do you convert the cost equation in terms of revenue in to a cost equation in terms of quantity? 4. A small home business is set up with an investment of Birr 1,000,000 for equipment. The business manufactures a product at a cost of Birr 60 per unit. If the product sells for Birr 140, how many units must be sold before the business breaks even? 5. A certain car model cost Birr 20,000 with a gasoline engine and Br 25,000 with a diesel engine. The number of miles per gallon of fuel for cars with these two engines is 25 and 30, respectively. Assume that the price of both types of fuel is Birr 1.50 per gallon Required: a) Drive the equation for the cost of driving a gasoline powered car b) Drive the equation for the cost of driving a diesel powered car. c) Find the break-even point, that is, find the mileage at which the diesel- powered car becomes more economical than the gasoline powered car. ABC company's cost function for the next four months is C= 500,000 - 5q. Required: a) The break-even dollar volume of sales if the selling price is Birr 6 per unit. b) What would be the company's cost if it decided to shut down operations for the next four months? c) If, b's of a strike, the most the company can produce is 100,000 units, should it shut down? Why or why not? 3. A retail co plans to work on a margin of 44% of retail price and to incur other variable costs of 4%. If it expects fixed cost of Birr 20,000, Find the equation relating total cost to sales Find the profit it sales are Birr 60,000. e) Find the breakeven revenue. d) If profit is Birr 15,000, what should be the revenue level? e) If the company has only one item at a price of Birr 15 per unit, how do you convert the cost equation in terms of revenue in to a cost equation in terms of quantity? 4. A small home business is set up with an investment of Birr 1,000,000 for equipment. The business manufactures a product at a cost of Birr 60 per unit. If the product sells for Birr 140, how many units must be sold before the business breaks even? 5. A certain car model cost Birr 20,000 with a gasoline engine and Br 25,000 with a diesel engine. The number of miles per gallon of fuel for cars with these two engines is 25 and 30, respectively. Assume that the price of both types of fuel is Birr 1.50 per gallon Required: a) Drive the equation for the cost of driving a gasoline powered car b) Drive the equation for the cost of driving a diesel powered car. c) Find the break-even point, that is, find the mileage at which the diesel- powered car becomes more economical than the gasoline powered car.

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a The breakeven dollar volume of sales can be calculated by setting the cost function equal to the revenue from sales C R 500000 5q 6q To find the breakeven point we need to solve for q 11q 500000 q 5... View the full answer