nformation on a business is given below. Variable Expenses: Raw material expense: 250 TL / piece Auxiliary equipment expense: 150 TL / piece Electricity expenses: 100 TL / piece Spare parts expense: 75 TL / piece Other variable expenses: 125 TL / piece Fixed costs: Depreciation, interest and insurance expenses: 75 000 TL Labor and personnel expenses: 250 000 TL Other fixed expenses: 115 000 TL Production capacity: 2000 pcs / month Sale price: 1600 TL / piece According to the above, a) Find the break-even point as the production quantity? b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?
nformation on a business is given below. Variable Expenses: Raw material expense: 250 TL / piece Auxiliary equipment expense: 150 TL / piece Electricity expenses: 100 TL / piece Spare parts expense: 75 TL / piece Other variable expenses: 125 TL / piece Fixed costs: Depreciation, interest and insurance expenses: 75 000 TL Labor and personnel expenses: 250 000 TL Other fixed expenses: 115 000 TL Production capacity: 2000 pcs / month Sale price: 1600 TL / piece According to the above, a) Find the break-even point as the production quantity? b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Information on a business is given below.
Variable Expenses:
Raw material expense: 250 TL / piece
Auxiliary equipment expense: 150 TL / piece
Electricity expenses: 100 TL / piece
Spare parts expense: 75 TL / piece
Other variable expenses: 125 TL / piece
Fixed costs:
Labor and personnel expenses: 250 000 TL
Other fixed expenses: 115 000 TL
Production capacity: 2000 pcs / month
Sale price: 1600 TL / piece
According to the above,
a) Find the break-even point as the production quantity?
b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?
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