This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: 28.Consider the accompanying breakeven graph for an investment, and answer the following questions as they pertain to the graph.Dollars (x 104)Total RevenueTotal costOutput (units/year)0 250 500 750 1000 1250 1500 1750(a) Give the equation to describe total revenue for xunits per yearPick two points (250, 50000) & (1000, 100000)Slope = 200Total revenue for x units/ year = 200x(b) Give the equation to describe total costs for xunits per yearPick two points (0, 100000) & (1000, 100000)Slope = 100 *Y axis starts at 100000.Total Cost for x units/year = 100000 + 100x(c) What is the breakeven level of xin terms of costs and revenues?TR TC = 0200x  (100000 +100x) =01000x 100000 = 0x = 1000(d) If you sell 1500 units this year, will you have a profit or loss? How much?You will have a profit. Total Profit = Total Revenue Total Cost200x  (100,000 +100x) = 100x 100,000100(1500) 100000 = 50,000 210.Three alternative designs have been created by Snakisco engineers for a new machine that spreads cheese between the crackers in Snakisco snack. Each machine machine that spreads cheese between the crackers in Snakisco snack....
View Full
Document
 Spring '08
 Any
 Physics

Click to edit the document details