Your Company has fix costs of 30,000 EUR and variable costs of 15 EUR/u. The selling...
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Your Company has fix costs of 30,000 EUR and variable costs of 15 EUR/u. The selling price of the products manufactured by the Company is given by the following equation: price = 70 - 0.02x 2a - Based on the previous data, create a table showing the total costs, the revenues and the profits for a level of production of 200, 400, 600, 800, 1000, 1200, 1400, 1600, 1800, 2000, 2200 & 2400 units. 2b - Find the quantity of items produced and sold in order to break even. Discuss critically this result. 2c - Find the quantity of items produced and sold in order to maximize revenues, and in order to maximize profits. Discuss critically these results. Your Company has fix costs of 30,000 EUR and variable costs of 15 EUR/u. The selling price of the products manufactured by the Company is given by the following equation: price = 70 - 0.02x 2a - Based on the previous data, create a table showing the total costs, the revenues and the profits for a level of production of 200, 400, 600, 800, 1000, 1200, 1400, 1600, 1800, 2000, 2200 & 2400 units. 2b - Find the quantity of items produced and sold in order to break even. Discuss critically this result. 2c - Find the quantity of items produced and sold in order to maximize revenues, and in order to maximize profits. Discuss critically these results.
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Answer rating: 100% (QA)
2a Units Produced Total Costs Revenues Profits 200 30300 13000 17300 400 31300 20000 11300 600 32300 ... View the full answer
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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