Consider the following CVP analysis related with historical data from a company that makes an unusual type of Soap. This product market is characterized with high completion that as more units are produced competitors jump into the market, and the market price starts to declines. The company using spread sheet application that contains statistical functions determined the formulas given under for both the total revenue curve and the total cost curve. R(x) = (X 2 100) + 10x-------------------------------------(1) C(X) = 700 + 2X----------------------------------------(2)

Questions Compute breakeven units. Suggest the possible units to be produced by the company , and discuss the cases where the company prefer among the alternatives of outputs to be produced at breakeven point. Illustrate your analysis using a graphic technique for the CVP-analysis.