explain the nature of break even analysis given the followingtotal cost and total revenue functions find break even point profit at output 30 total cost=100+5x,total revenue=10x
Answers
"The nature of break-even analysis means techniques used to determine the cost-volume relationship and also helps to find out the point where the revenue and costs agree with each other.
It represents the level of operation whether it is loss or profit.
The breakeven point profit at output 30 total cost=100+5x, total revenue=10x is 66161.
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Answer:
The Naturally Made Bath and Body store pays $550 a month for rent and utilities. The average cost for its products to be manufactured is about $3.00 an item. If the average price for a product sold in the store is $5.50, what will the break-even point be? Let x represent the number of products sold.
The break-even point occurs when the cost function equals the revenue function.
550 + 3.00x = 5.50x
Naturally Made needs to sell
220 products to break even.
The cost or revenue when it sells the break-even number of products will be $1,210.
Explanation: