Question
A Nestle Company which is a Multinational Company, want to build a plant in Pakistan to manufactures Fruita vitals. So the board of directors assigns
A Nestle Company which is a Multinational Company, want to build a plant in Pakistan to manufactures Fruita vitals. So the board of directors assigns the management to go and build the plant in Pakistan to expand their business in Asia. The management comes to Pakistan to build the manufacturing plant to expand the Nestle market. So when the management team comes to Pakistan, from the analysis they came to know that about $5000 k would be spend to manufacturing the plant and for installation of machines it would take $2000 k. The management determined $25 cost that would be rise as the unit manufactured. The management was thinking to sell each unit for $50 but after analysis the market and demand of people they decide to set the price $45 for each juice. So now here you have to determine the break-even point for management, above those units the company would able to generate profits and below the break-even point they company would have to face losses.
Determine the fixed cost?
Determine the variable cost?
Determine the revenue?
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