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3 . 3 . Raybetz is a trader in coconut drops The firm has the capacity to produce 1 5 0 , 0 0 0

3.3. Raybetz is a trader in coconut drops The firm has the capacity to produce 150,000
units p.a The variable cost is $22 per unit, while the annual fixed cost is $1,260,000.. The
product is sold across five segments of the market
i. The first 30,000 units are sold hot off the fire for $28 each
ii. The next 30,000 units are sold to corner shops for $32 each
iii. The next 30,000 units are sold to retail supermarkets and shops for $36 each
iv. The next 30,000 units are sold to the local hotel trade for $40 each
v. The last 30, are sold to an export market for $48 each
Required Determine the unit of out put required to achieve the break even point
3.4 Tasha Masha is a trader in Bustamante Backbone or Stagga-Back. The firm has the
capacity to produce 80,000 units per annum. The variable cost per unit is $8, while the
annual fixed cost is $556,000. The product is sold in batches as follows
i. The first 20,000 units are sold at the fireside for $15 each
ii. The next 20,000 units are sold to local shops for $20 each
iii. The next 20,000 is sold to the local hotel trade for $30 each
iv. The last 20,000 is sold for export at $40 each
Required Determine the unit of out put required to achieve the break even point
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