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

1 answer

To find the BE dollar volume of sales, we need to first find the BE quantity of sales. This is the point where total revenue equals total cost, or where:

TR = P x Q = C

In this case, the selling price (P) is RM6/unit, and the cost function (C) is C = 500,000 + 5Q. So we have:

6Q = 500,000 + 5Q

Q = 500,000

This is the BE quantity of sales in units. To find the BE dollar volume of sales, we multiply this by the selling price:

BE sales = Q x P = 500,000 x RM6 = RM3,000,000

Therefore, the BE dollar volume of sales is RM3,000,000.
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