North-East Steel, Inc.

is a manufacturer of steel, with a productive capacity of

60.000 tons. Their annual fixed costs are 8M€ and the unitary variable costs are
90 €/ton. The total assets of the company have been valued in 20M€.

a. Compute the break-even point, considering a selling price of

250€/ton.
b. How much should the company sell if they want to obtain a
profitability of 20% over the total assets of the company, without
changing the selling price?
c. How should you change the selling price to be able to obtain the
20% profitability (see b.) by selling all of the productive capacity?
(say if it should increase or decrease and compute exactly how
much)