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  • Ananayo Ae 101 Assignmetn 5

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    Cherie Soriano Ananayo
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    The document provides calculations to determine break-even quantities, sales, costs, and profits for a company with given price, variable cost, and total fixed cost information. It calculates the total revenue, total cost, and total profit functions. It then uses these functions to find that the break-even quantity is 2,000 units, break-even sales are 500,000, and profit at 7,500 units is 1,875,000. It also calculates total variable cost at 5,000 units as 500,000 and the units needed to cover total fixed costs as 1,200.

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    The document provides calculations to determine break-even quantities, sales, costs, and profits for a company with given price, variable cost, and total fixed cost information. It calculates the total revenue, total cost, and total profit functions. It then uses these functions to find that the break-even quantity is 2,000 units, break-even sales are 500,000, and profit at 7,500 units is 1,875,000. It also calculates total variable cost at 5,000 units as 500,000 and the units needed to cover total fixed costs as 1,200.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    34 views2 pages

    Ananayo Ae 101 Assignmetn 5

    Uploaded by

    Cherie Soriano Ananayo
    The document provides calculations to determine break-even quantities, sales, costs, and profits for a company with given price, variable cost, and total fixed cost information. It calculates the total revenue, total cost, and total profit functions. It then uses these functions to find that the break-even quantity is 2,000 units, break-even sales are 500,000, and profit at 7,500 units is 1,875,000. It also calculates total variable cost at 5,000 units as 500,000 and the units needed to cover total fixed costs as 1,200.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    ANANAYO, CHERIE LYN S.

    COA BLOCK 1

    GIVEN:

    price = 250

    variable cost = 100

    total fixed cost = 300000

    1. Formulate for the TR, TC, TP functions

    a. Formulate the TR function

    TR = p x Q

    TR = 250 x Q

    TR = 250Q

    b. Formulate the TC function

    TC = TFC + TVC

    TC = 300,000 + (VC x Q)

    TC = 300,000 + (100 x Q)

    TC = 300,000 + 100Q

    c. Formulate the TP function

    TP = TR – TC

    TP = 250Q – (300,000 + 100Q)

    TP = 250Q – 300,000 – 100Q

    TP = 150Q – 300,000

    2. What is the break-even quantity?

    TR = TC

    250Q = 300,000 + 100Q

    250Q – 100Q = 300,000

    150Q = 300,000

    Q = 300,000/150

    Q = 2,000 Break-even quantity


    3. What is the break-even sales?

    TR = 250Q

    TR = 250 (2,000)

    TR = 500,000 Break-even sales

    4. Determine profit when the volume of production is equal to 7500.

    TR = 250Q

    TR = 250 (7,500)

    TR = 1,875,000

    5. Determine the total variable cost at 5000 units

    TVC = VC x Q

    TVC = 100 x 5,000

    TVC = 500,000

    6. Determine the units to produce to cover-up the total fixed cost.

    TR = p x Q

    300,000 = 250 x Q

    300,000 = 250Q

    Q = 300,000/250

    Q = 1,200 units

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