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: 2-8.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 2-10.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