Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?
Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit for its products. Let us further consider that selling price is birr 2.7 per unit. Required: A. Write the revenue and the cost equation of the company B. At what level of production output is the company Break-even? C. What is the amount of the revenue when the company produces 300,000 units? D. If the company plans to earn a profit of 7000, what amount of quantity has to be produced?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q2. Suppose that Nafitol Company has a fixed cost of ETB 35,000 and VC of ETB 1.75 per unit
for its products. Let us further consider that selling price is birr 2.7 per unit.
Required:
A. Write the revenue and the cost equation of the company
B. At what level of production output is the company Break-even?
C. What is the amount of the revenue when the company produces 300,000 units?
D. If the company plans to earn a profit of 7000, what amount of quantity has to be
produced?
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