Question

2.
A manufacturer
cells his product at Rs 5
per unit. Fixed cost of production is Rs: 3000
The variable cost are estimated at R. 40% of
total revenue (i) Find the total cost function
ii) the break-even point.​

Answer 1

Answer:

To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin

Answer 2

Answer:

=7500

Step-by-step explanation:

We have, 40% × x = 3000

or,  

40

100

× x = 3000

Multiplying both sides by 100 and dividing both sides by 40,

we have x = 3000 ×  

100

40

x = 7500

If you are using a calculator, simply enter 3000×100÷40, which will give you the answer.