Question

XYZ company's cost function for the next four months is C = 500,000 + 5Q

a/ Find the BE dollar volume of sales if the selling price is br. 6 / unit

b/ What would be the company's cost if it decides to shut down operations for the next four months

c/ If, because of strike, the most the company can produce is br. 100,000 units, should it shutdown? Why or why not?

Answer 1

Thought we did this already.
(a) BE is when cost = revenue, or
500,000+5Q = 6Q

(b) duh - they told you that the cost is C

(c) compare C against revenue for Q=100,000

Answer 2

need answer