Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

If the fixed cost is 9000 per year. Variable costs are estimated to be Tk. 60.75 / item. The firm wants to break even if 80 items are sold per year. What should be the unit price of the item?

Sagot :

sqdancefan

9514 1404 393

Answer:

  Tk 173.25

Step-by-step explanation:

The firm will break even if its cost is equal to its revenue. That is, the price of each item sold must equal the cost of producing it. To cover the fixed cost, a share of it must be added to each of the items sold. Then the break-even price for 80 items is ...

  price = variable cost + share of fixed cost

  price = Tk 60.75 +9000/80 = Tk 60.75 +112.50 = Tk 173.25

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.