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
Section: Chapter Questions
Problem 1PS
Related questions
Question
Calculate the break-even value per month during the first six months of operations.

Transcribed Image Text:INFORMATION
An entrepreneur recently opened a filling station. Diesel is sold at R15 per liter and the variable costs total
R12 per liter. The fixed costs per month are R270 000. After six months of trading, the sales achieved
were 1080 000 liters and the sales volume has remained at the same level each month. In an attempt to
improve performance, the entrepreneur is considering the following proposals:
REQUIRED
Study the information provided below and answer each of the following questions independently:
Calculate the break-even value per month during the first six months of operations.
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