Florida Citrus produced 40,000 boxes of fruit that sold for Rs. 3 per box. The total variable costs for the 40,000 boxes were Rs. 60,000, and the fixed costs were Rs.75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by Rs. 22500.
Florida Citrus produced 40,000 boxes of fruit that sold for Rs. 3 per box. The total variable costs for the 40,000 boxes were Rs. 60,000, and the fixed costs were Rs.75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by Rs. 22500.
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
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- Florida Citrus produced 40,000 boxes of fruit that sold for Rs. 3 per box. The total variable costs for the 40,000 boxes were Rs. 60,000, and the fixed costs were Rs.75,000.
(a) How much profit (or loss) resulted?
(b) What was the break-even quantity?
(c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by Rs. 22500.
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