Given the following, solve the independent questions using the CVP analysis. Selling Price = 30 Variable Cost per Unit = 20 Total Fixed Cost = 60,000 REQUIRED: 1 Find the following functions: • Total Revenue = [TR] • Total Variable Cost = [TVC] • Total Cost = [TC] • Total Profit = [TP] 2 What is the volume of production for the business firm not to incur any profit nor loss? 3 At zero quantity of production, how much is the total cost? 4 What is the volume of production if the company wants to earn 100,000 profit?

Given the following, solve the independent questions using the CVP analysis. Selling Price = 30 Variable Cost per Unit = 20 Total Fixed Cost = 60,000 REQUIRED: 1 Find the following functions: • Total Revenue = [TR] • Total Variable Cost = [TVC] • Total Cost = [TC] • Total Profit = [TP] 2 What is the volume of production for the business firm not to incur any profit nor loss? 3 At zero quantity of production, how much is the total cost? 4 What is the volume of production if the company wants to earn 100,000 profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Given the following, solve the independent questions using the CVP analysis.
Selling Price = 30
Variable Cost per Unit = 20
Total Fixed Cost = 60,000
REQUIRED:
1 Find the following functions:
• Total Revenue = [TR]
• Total Variable Cost = [TVC]
• Total Cost = [TC]
• Total Profit = [TP]
2 What is the volume of production for the business firm not to incur any profit nor loss?
3 At zero quantity of production, how much is the total cost?

4 What is the volume of production if the company wants to earn 100,000 profit?

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Step 3 Working Note #2:- Volume of production for Zero profit

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Step 4 Working Note #3:- Total cost at Zero quantity

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Step 5 Working Note #4:- Volume of production to earn 100,000 profit

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