Question

6. A company sells its products at the rate of 6 per unit. The variable costs are estimated
to run 25% of the total revenue received. If the fixed costs for the product are 4500, find
(i) the total revenue function (ii) the total cost function
(iii) the profit function
(iv) the breakeven point
(d) the number of units the company must sell to cover its fixed cost​

Answer 1

Here, price per unit (p)=Rs.6
⇒ Total revenue R(x)=p.x=6x where x is the number of unit sold.
⇒ Cost function C(x)=4500+
100
25
​
R(x)

⇒ Cost function C(x)=4500+
100
25
​
×6x

⇒ C(x)=4500+
2
3
​
x

⇒ Profit function P(x)=R(x)−C(x)

⇒ P(x)=6x−(4500+
2
3
​
x)

∴ P(x)=6x−
2
3
​
x−4500
⇒ At break even point P(x)=0
⇒ 6x−
2
3
​
x−4500=0

⇒
2
12x−3x
​
−4500=0

⇒ x=
9
9000
​
=1000
⇒ Hence, x=1000 is break even point.

Answer 2

Given :  A company sells its products at the rate of 6 per unit. The variable costs are estimated to run 25% of the total revenue received.

the fixed costs for the product are 4500

To find

(i) the total revenue function

(ii) the total cost function

(iii) the profit function

(iv) the break even point

(v) the number of units the company must sell to cover its fixed cost.

​

Solution:

A company sells its products at the rate of 6 per unit.

number of units = x

R(x) = 6x    revenue function

Fixed cost = 4500

Variable cost = (25/100) R(x)  = (25/100)6x  =  1.5x

the total cost function = 4500 + 1.5x

the profit function  = 6x - (4500 + 1.5x)

= 4.5x - 4500

4.5x - 4500  = 0  for break even

=> x = 1000

the number of units the company must sell to cover its fixed cost. = 1000

Learn More

Q. By considering the Particulous as mentioned:-fixed cost-1.5 Lakh ...

brainly.in/question/13282320

For the following, perform a break-even analysis showing ...

brainly.in/question/13327048