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A company sells a product for $72 each. The variable costs are $15 per unit and fixed costs are $29,697 per month

A Company Sells A Product For 72 Each The Variable Costs Are 15 Per Unit And Fixed Costs Are 29697 Per Month class=

Sagot :

Step 1

Given;

Step 2

A)

[tex]\begin{gathered} Revenue=\text{ Number of units sold }\times\text{ cost per unit} \\ Let\text{ each quant}\imaginaryI\text{ty of good sold be x} \\ cost\text{ per unit= \$72} \\ TR=72\times x=72x \\ \end{gathered}[/tex][tex]\begin{gathered} B)\text{ }total\text{ cost=f}\imaginaryI\text{xed cost + var}\imaginaryI\text{able cost} \\ TC=29697+15x \end{gathered}[/tex]

C)At breakeven, TR = TC

[tex]\begin{gathered} 72n=29697+15x \\ 72x-15x=29697 \\ 57x=29697 \\ x=\frac{29697}{57}=521 \end{gathered}[/tex]

the number of units needed to breakeven is 521

D) To calculate the TR, we substitute 521 for n in the given function for TR as seen below:

[tex]\begin{gathered} TR=72x \\ TR=72(521)=\text{ \$}37512 \end{gathered}[/tex]

TR = $37512

Answers;

[tex]\begin{gathered} A)\text{ 72x} \\ B)\text{ 29697 +15x} \\ C)\text{ 521 units} \\ D)\text{ \$37512} \end{gathered}[/tex]

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