Math Assignment
- 2. Our Group Members : • Md. Sadman Sakib (2016010000031) • Md. Yeasin Arafat (2016010000014) • Sifatur Rahman Uday (2016010000035) • Fatema Hossain (2016010000015) • Jinia Jaman (2016010000016) • Israt Jahan Meghla (2016010000030)
- 3. Problem : A manufacturer company record has a fixed cost of 15000 and variable cost per record each taka 5 selling price per record taka 10. Requirement : • Find out the revenue, cost and profit equation? • At what number of units will break-even occur? • At what sales volume (revenue) will break-even occur? • Make a break-even chart.
- 4. Solution : Let, Per unit sales price = p Production unit = Q Fixed cost = Fc Variable cost = Vc Given that, Fc = 15000 Vc = 5tk. / record P = 10tk. / record
- 5. 1. We know that, Total Revenue (TR) = P * Q = 10q ans. We know that, Total Cost (TC) = Fc + Vc = 15000 + 5Q ans.
- 6. We know that, Total profit = TR – TC = 10Q – (15000 + 5Q) = 10Q – 15000 – 5Q = 5Q – 15000
- 7. 2. We know that, At break-even point, TR – TC = 0 5Q – 15000 = 0 5Q = 15000 Q = 3000 When Q = 3000, then break-even will occur.
- 8. Total Revenue (TR) = 10 * Q = 10 * 3,000 = 30,000 Sales volume = 30,000 tk. When break-even occur.
- 9. Cost Line Revenue Line Fixed cost Line 0 x Y 600 1200 1800 2400 3000 6000 12000 18000 24000 30000 Variable Cost Fixed Cost Quantity RevenueandCostline(TK) Fixed cost= 15,000 Total Revenue = 10Q Total Cost = 15,000 + 5Q Figure : Break-even Chart (3000,30000) Break-even point (3000,30000) 15000 Q= 600, TC = 18,000 Q=1200, TC = 21,000 Q=1800, TC = 24,000 Q=2400, TC = 27,000 Q=3000, TC = 30,000 27000 21000