1. ABC’ company’s cost function for the next four months is C= 500,000 + 5q.Required: The break-even dollar volume of sales if the selling price is Birr 6 per unit.What would be the company’s cost if it decided to shut down operations for the next four months?If, b/s of a strike, the most the company can produce is 100,000 units, should it shut down?  Why or why not?2.  In its first year, “Abol buna” Company had the following experience.Sales = 25,000 unitsSelling price = Birr 100Total variable cost  = Birr 1,500,000TFC = Birr 350,000Required:Develop revenues, cost, and profit functions for the company in terms of quantity.Find the break-even point in terms of quantity.Find the break-even revenue.If profit had been Birr 500,000 what would have been the sales volume (revenue) and the quantity of sales.What would have been the profit if sales were Birr 2,000,000?3.  A retail co plans to work on a margin of 44% of retail price and to incur other variable costs of 4%.  If it expects fixed cost of Birr 20,000,Find the equation relating total cost to sales.Find the profit it sales are Birr 60,000.Find the breakeven revenue.If profit is Birr 15,000, what should be the revenue level?4. A firm manufactures and markets a product that sells for Birr 20 per unit. Fixed costs associated with activity total Birr 40,000 a month, while variable cost per unit is Birr 10.  A maximum of 10,000 units can be produced and sold.Required:  Drive the TR, TC and Total profit functions.Sketch the TR, TC and Total profit functions in the same coordinate system. B   What is the Break-even point (in terms of quantity and sales volume)?Drive the new TC, Total profit functions given that FC is increased by Birr 10,000 a month, and calculate the new break-even point.Drive the new TC and Total profit functions given that unit variable costs is decreased by 20% and calculate the new Break-even point.Drive the new TR and Total profit functions given that the unit selling price increases by 20% and calculate the new break-even point.