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
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?
2 answers
need answer