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Homework answers / question archive / A factory to be established of Fixed cost of (A), expecting that the price per unit is (B) and variable cost is (C) OR

A factory to be established of Fixed cost of (A), expecting that the price per unit is (B) and variable cost is (C) OR

Economics

A factory to be established of Fixed cost of (A), expecting that the price per unit is (B) and variable cost is (C) OR. Use this information to answer the following:                                                  [26marks]

  1. Calculate breakeven in quantity                                          8marks
  2. Calculate beak even in money                                            4marks
  3. Draw breakeven chart.                                             4marks
  4. Indicate whether 150000 and 200000 in loss or profit area.     4 marks
  5. What would happen to the breakeven point if the fixed cost decrease of 7%.

A

Fixed cost

B

Price/unit

C

Variable cost/unit

51000

1.8

1.44

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