Break even point
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This document discusses break even analysis for a company. It defines break even point as when total revenue equals total cost. It provides formulas for linear cost, revenue, and profit functions. As an example, it calculates that a company making calculators must sell 20,000 units to break even based on a unit variable cost of Rs.225, fixed cost of Rs.25,00,000, and selling price of Rs.350 per unit. It concludes that selling more than 20,000 units would result in profit while less would result in a loss. It also provides a practice problem to determine the break even point for a product sold at Rs.450 per unit with variable cost of Rs.330 and fixed cost of Rs.
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Break even point
The document discusses linear functions and their application to cost, revenue, and profit functions. It defines a linear function as having the form f(x) = ax + b, where a and b are constants.
It explains that a linear cost function is the total variable cost plus total fixed cost. A linear revenue function is price multiplied by quantity sold. Profit is defined as total revenue minus total cost.
The break even point occurs when total revenue equals total cost. An example is provided to demonstrate calculating the break even point for a company by setting the linear revenue and cost functions equal to each other and solving for the quantity of units that must be sold.
Application of Functions in Business and Economics
Functions can model relationships between variables in business and economics. A function y=f(x) indicates that the dependent variable y depends on the independent variable x. For a business, total cost C can be a function of quantity produced Q, written as C=f(Q). Similarly, revenue R can be a function of Q, as R=f(Q). Profit π can then be derived as π=R-C. As an example, if a business has total cost function C=150+7Q and revenue function R=20Q, then the profit function is π=20Q-150-7Q. For multivariate functions with multiple independent variables, total cost C could depend on quantities
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The document provides information and examples about graphing functions using calculators:
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This document provides information and examples about calculating break-even point for companies that produce multiple products. It defines weighted average selling price and variable expenses as the sales-weighted averages of individual product prices and expenses. Break-even point for multiple products is calculated as total fixed costs divided by weighted average contribution margin per unit. An example is provided to demonstrate calculating break-even point in both units and rupees for a company with three products. The document also discusses calculating an overall composite break-even point using total fixed costs divided by the composite profit/variable ratio.
Assignment 4 q2
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Total cost is the sum of fixed costs and variable costs, which can be expressed as functions such as C = a + bx, where a is the fixed cost and bx is the variable cost. Profit is defined as total revenue minus total costs, where total revenue comes from the total revenue function R and total costs from the total cost function C. The break-even point is where total revenue equals total costs so that profit is zero, meaning the point at which revenue just covers costs.
Functions in Economics Part-I.pdf
1) Demand and supply functions relate the price of a good to its demand or supply quantity. They are written as formulas with price (p) as a function of demand (D) or supply (S). For example, demand functions may be written as p = 3 + 5D or p = 7D + D2, relating price to demand quantity. Supply functions are similarly written with price as a function of supply.
2) Total revenue is the product of price and demand quantity. The total revenue function is thus written as R = pD, relating total revenue (R) to price (p) and demand (D) through the demand function. For example, if demand is p = 18 + D
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Break even point
The document discusses linear functions and their application to cost, revenue, and profit functions. It defines a linear function as having the form f(x) = ax + b, where a and b are constants.
It explains that a linear cost function is the total variable cost plus total fixed cost. A linear revenue function is price multiplied by quantity sold. Profit is defined as total revenue minus total cost.
The break even point occurs when total revenue equals total cost. An example is provided to demonstrate calculating the break even point for a company by setting the linear revenue and cost functions equal to each other and solving for the quantity of units that must be sold.
Application of Functions in Business and Economics
Functions can model relationships between variables in business and economics. A function y=f(x) indicates that the dependent variable y depends on the independent variable x. For a business, total cost C can be a function of quantity produced Q, written as C=f(Q). Similarly, revenue R can be a function of Q, as R=f(Q). Profit π can then be derived as π=R-C. As an example, if a business has total cost function C=150+7Q and revenue function R=20Q, then the profit function is π=20Q-150-7Q. For multivariate functions with multiple independent variables, total cost C could depend on quantities
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2) It instructs the reader to familiarize themselves with appendix A of the textbook to learn how to adjust windows and use table and trace features on calculators.
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This document provides information and examples about calculating break-even point for companies that produce multiple products. It defines weighted average selling price and variable expenses as the sales-weighted averages of individual product prices and expenses. Break-even point for multiple products is calculated as total fixed costs divided by weighted average contribution margin per unit. An example is provided to demonstrate calculating break-even point in both units and rupees for a company with three products. The document also discusses calculating an overall composite break-even point using total fixed costs divided by the composite profit/variable ratio.
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A carmaker adopted postponement to reduce mismatch between supply and demand. Originally, mismatch was 3000 units but with postponement it reduced to 1200 units, a 60% decrease. Without postponement, production was 3000 units while demand was 6000 units. With postponement, production became 2500 units and demand was 4000 units, reducing the mismatch.
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Total cost is the sum of fixed costs and variable costs, which can be expressed as functions such as C = a + bx, where a is the fixed cost and bx is the variable cost. Profit is defined as total revenue minus total costs, where total revenue comes from the total revenue function R and total costs from the total cost function C. The break-even point is where total revenue equals total costs so that profit is zero, meaning the point at which revenue just covers costs.
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1) Demand and supply functions relate the price of a good to its demand or supply quantity. They are written as formulas with price (p) as a function of demand (D) or supply (S). For example, demand functions may be written as p = 3 + 5D or p = 7D + D2, relating price to demand quantity. Supply functions are similarly written with price as a function of supply.
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Write a program to print out all armstrong numbers between 1 and 500
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Q1 provide example of one saudi company and analyze two examples o
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cost accounting. break-even point analysis.ohada approach. notes.pptx
BEP of an enterprise is the turnover for which this enterprise has realized neither profit nor loss. The sales are equal to total corresponding costs.
Break even analysis
The document discusses break even analysis, which determines the level of output and sales required for a business to neither profit nor lose money. It provides an example calculating the break even point for an MP3 player business as 1,000 units. Break even analysis is useful for product launches and diversification to understand the sales needed to cover costs. Maintaining output above break even provides a margin of safety and results in profits.
Cvp & be analysis
This document discusses concepts related to cost-volume-profit analysis and break-even analysis. It defines marginal costing, contribution margin, profit-volume ratio, break-even point, and margin of safety. It also includes examples showing how to calculate these metrics using cost and revenue data. The document is intended to help managers understand how costs, sales volume, and price affect profitability.
Linear programming in matlab
This document summarizes a research paper that solves a product mix optimization problem using linear programming in MATLAB. The problem involves maximizing profit from producing two products (P and Q) given constraints on machine time and market demand. The document formulates the problem as a linear program, graphs the feasible region in MATLAB, and uses the simlp command to find the optimal solution: produce 100 units of P and 30 units of Q per week for maximum profit of $6,300. In solving this example problem, the document illustrates how linear programming and MATLAB can be applied to optimize resource allocation and profit in a manufacturing system.
Complete the following questions on cost function 1.Write the.docx
Complete the following questions on cost function:
1.
Write the cost function resulting from your regression results. Include specific coefficients.
2.
Estimate the total, average, and marginal costs for a firm with a quantity sold of 60,000 units.
3.
Is a firm operating at the point identified in question 2 operating at a profit-maximizing level of output? How do you know? If they are not, should they expand or reduce quantity sold to move closer to the profit maximization level? Explain your reasoning.
4.
Estimate the average cost for a firm with a quantity sold of 70,000 units. Compare your answer with the answer to question #2 above. Does the manufacturer appear to have economies of scale? How do you know?
Please let me know if you can help, and make sure the calculations show on the spreadsheet.
The spreadsheet must be organized as follows:
·
Tab 2: Original data
·
Tab 5: Output and answers to questions for cost function (Copy the data necessary to the top of this spreadsheet before running the regression.)
Data
Total cost = sum of all costs of doing business
Q sold = the quantity sold (in units) that quarter
Q prod = the quantity produced (in units) that quarter
Q dem = the quantity demanded (in units) that quarter
Price = price per unit charged by the firm
Labor = # labor hours used in production in that quarter. For purposes of this assignment, assume that all labor hours are identical.
Capital Investment = the number of plants in operation that quarter. Assume for the sake of this project, that all plants are approximately equal in size and use of technology.
Advertising Expenses = dollars spent on advertising that quarter
Capital
Consumer
Advertising
TC
Qsold
Qprod
Qdem
Price
Labor
Invest
Income
Expenses
Qtr 1
$4,415,000
499,999
499,999
549,425
$9.25
50,000
5
$20,000
$150,000
Qtr 2
$5,186,644
587,236
587,236
714,993
$9.25
60,000
5
$20,600
$150,000
Qtr 3
$5,174,189
548,667
647,480
548,667
$9.75
70,000
5
$21,000
$125,000
Qtr 4
$7,282,201
766,297
667,484
833,521
$9.65
75,000
5
$21,200
$200,000
Qtr 5
$7,630,401
811,784
811,764
860,747
$9.90
85,000
6
$21,400
$200,000
Qtr 6
$6,971,144
697,396
828,822
697,396
$10.25
95,000
6
$22,000
$150,000
Qtr 7
$7,915,228
715,182
829,046
829,046
$11.50
100,000
6
$21,600
$325,000
Qtr 8
$6,901,834
764,199
769,903
769,903
$10.00
75,000
6
$21,600
$150,000
Qtr 9
$7,719,569
811,784
811,784
811,784
$10.05
85,000
6
$21,600
$225,000
Qtr 10
$4,011,162
425,280
656,281
656,281
$10.75
60,000
6
$21,200
$125,000
Qtr 11
$8,688,700
744,619
829,046
829,046
$11.76
100,000
6
$22,000
$400,000
Qtr 12
$8,780,822
673,009
1,106,471
1,103,171
$12.35
140,000
8
$22,000
$400,000
.
Applications of calculus in commerce and economics
This document contains examples and explanations of key concepts in applying calculus to commerce and economics, including:
1) Cost functions, revenue functions, profit functions, and determining break-even points. An example shows calculating the break-even points for a TV manufacturer.
2) Calculating minimum production needed to ensure no loss, and how changing price affects break-even point.
3) Determining the price needed to ensure no loss when production quantity is fixed.
4) Definitions and examples of average cost, total cost, marginal cost, and finding the output where average cost increases.
5) Deriving a revenue function from a demand function and finding the price and quantity that minimize revenue.
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Mathematics For Management CHAPTER THREE PART I.PPT
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cost accounting. break-even point analysis.ohada approach. notes.pptx
cost accounting. break-even point analysis.ohada approach. notes.pptx
Complete the following questions on cost function 1.Write the.docx
Complete the following questions on cost function 1.Write the.docx
Applications of calculus in commerce and economics
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Break even point
- 1. NADEEM UDDIN ASSOCIATE PROFESSOR OF STATISTICS https://www.slideshare.net/NadeemUddin17 https://nadeemstats.wordpress.com/listofbooks/
- 2. Break Even Point: When total revenue equal to total cost that is R(x) = C(x) Solve the above equation for x where x is the break even level of output,Which shows there is no profit, no loss.
- 3. Linear Cost function: C(x) = Total variable cost + Total fixed cost Linear Revenue function: R(x) = Total revenue = ( price )( quantity sold ) Linear Profit function: P(x) = Profit = Total revenue – Total cost
- 4. Example A company produce calculator and estimate that variable cost per unit including materials, labour and marketing cost is Rs.225, where the fixed cost is Rs.25,00000 the company estimate that the selling price will be Rs.350 per calculator. Determine the number of calculator which must be sold in order for the firm to break even. Solution: R(x) = 350𝑋 C(x) = 225 𝑋 + 2500000
- 5. Apply Break even condition R(x) = C(x) 350𝑋 = 225 𝑋 + 2500000 350𝑋 - 225 𝑋 = 2500000 125 𝑋 = 2500000 𝑋 = 2500000 125 𝑋 = 20000 Calculators
- 6. Conclusion: (a) The company must sell 20000 calculators in order to break even (no profit no loss) (b) If company sell more than 20000 calculators there will be profit. (c) If company sell less than 20000 calculators there will be loss. DO YOURSELF A firm sell a product for Rs 450 per unit.Variable cost per unit is Rs.330 and fixed cost is Rs.450000,how many units must be sold in order to break even and make a profit. (Answer: x = 3750 and for profit x > 3750 )