(a) Calculate the break-even point? (b) Suppose the company wanted to produce 100000 mobiles in the next year. How breakeven point will change.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A mobile manufacturer company plans to produce 50000 mobiles this year. The
company will sell for 150 OMR each. The fixed cost of the company 3 million and
total variable costs are 5 million OMR.
(a) Calculate the break-even point?
(b) Suppose the company wanted to produce 100000 mobiles in the next year.
How breakeven point will change.
Transcribed Image Text:A mobile manufacturer company plans to produce 50000 mobiles this year. The company will sell for 150 OMR each. The fixed cost of the company 3 million and total variable costs are 5 million OMR. (a) Calculate the break-even point? (b) Suppose the company wanted to produce 100000 mobiles in the next year. How breakeven point will change.
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