Question

Assignment 2

Managerial Economics



Assume that Randy’s photocopying Service charges $.10 per photocopy. If fixed costs are $27000 a year and variable costs are $0.04 per copy.

1. How Randy can compute his breakeven point? Show the result in graph.

2. How many photocopies are required to earn $ 500 profit?

3. Identify the safety margin at breakeven point.​

Answer 1

Answer:

Assume that Randy's photocopying Service charges $.10 ... are $27000 a year and variable costs are $0.04 per copy. 1. How Randy can compute his breakeven point?

Answer 2

Answer:

1.450000

Explanation:

1.BEP=27000/(.1-.04)