Question

ABC company cost function for the next four months is C=500000+5q required :
a The break -even dollar volume of sales if the selling price is birr 6 per unit.
b what would be the compans cosu if it decided to shut down operations for the next four months ?

Answer 1

6 q = 5 q + 500,000
so 500,000
if q = 0 then c = 500,000

Answer 2

3000000