A firm’s monthly fixed costs are $13500. The firm makes a single product, for which the unit variable cost is $8. The product sells at a price $12. Plant capacity is 6750 units per month. Find the breakeven output level. What happens if variable cost and selling price both increase by 12.5% What percentage of plant capacity is used at breakeven level?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A firm’s monthly fixed costs are $13500. The firm makes a single product, for which the unit variable cost is $8. The product sells at a price $12. Plant capacity is 6750 units per month.
- Find the breakeven output level.
- What happens if variable cost and selling price both increase by 12.5%
- What percentage of plant capacity is used at breakeven level?
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