a.

Break-even point = 25000 120

Revenue = $1700Q
Q Revenue ($millions) 100
0 0
60 102
80
Total Production Cost = $10M + $1300Q
Q Cost ($millions)
0 10 60
60 88
40

20

0
0 10 20 30 40 50 60

b.
Q = Production quantity
Profit = Sales Revenue - Total cost (new data) = Unit Revenue *Q - (Fixed Cost + Unit Cost *Q)
At the Break-even point, profit is 0:
0 = - $10000000 + $400Q => Q = 25000

d.
Data Results
Unit Revenue 1700 Total Revenue =Unit_Revenue*MIN(Sales_Forecast,Production_Quanti
Fixed Cost 10000000 Total Fixed Cost =IF(Production_Quantity>0,Fixed_Cost,0)
Marginal Cost 1300 Total Varible Cost =Marginal_Cost*Production_Quantity
Sales Forecast 30000 Profit (Loss) =Total_Revenue - (Total_Fixed_Cost + Total_Variable_C

Break-even point =Total_Fixed_Cost / (Unit_Revenue - Marginal_Cost)

Production Quantity = Sale Forecast

Data Results
Unit Revenue 1700 Total Revenue 51000000
Fixed Cost 10000000 Total Fixed Cost 10000000
Marginal Cost 1300 Total Varible Cost 39000000
Sales Forecast 30000 Profit (Loss) 2000000

Production Quantity 30000 Break-even point 25000

e.
Data Results
Unit Revenue 1700 Total Revenue 34000000
Fixed Cost 10000000 Total Fixed Cost 10000000
 Marginal Cost 1300 Total Varible Cost 26000000
Sales Forecast 30000 Profit (Loss) -2000000

Production Quantity 20000 Break-even point 25000

 Revenue

40 50 60 70

<=> Profit = $1700Q - $10000000 - $1300Q = - 10000000 + $400Q
c.
Mathematical Model for obtaining Break-even poin
Break-even point = Total Fixed Cost / (Unit Revenue
With new data:
Break-even point = $10000000 / ($1700 - $1300) =
So at the Break-even point, the production quantity

s_Forecast,Production_Quantity)
0,Fixed_Cost,0)
on_Quantity
ixed_Cost + Total_Variable_Cost)

_Revenue - Marginal_Cost)
 for obtaining Break-even point:
otal Fixed Cost / (Unit Revenue - Marginal Cost)

10000000 / ($1700 - $1300) = $10000000 / $400 = 25000

point, the production quantity is 25000