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How can I do this? a company produces and sells a product in a market with free competition. The relationship between the produced amount and

How can I do this?

a company produces and sells a product in a market with free competition. The relationship between the produced amount and the excess cost is as follows:

Quantity (x) Differential cost (DK)
0-100 4,000,000
101-200 3,000,000
201-300 1,800,000
301-400 2,000,000
401-500 5 700 000
501-600 8,500,000
601-700 16 400 000
701-800 40 600 000

The market price for the product is 55,000 per piece. The fixed costs amount to 2,000,000,-. Carry out calculations and make a graphical representation (diagram) of the unit costs so that you can answer the following questions:

B1.1 What do we mean by upper and lower coverage points? Mark the upper and lower coverage points in the diagram.

B1.2 What do we mean by the profit optimum? Mark the winning optimum in the chart. At what volume do we find the profit optimum and what is the profit in the profit optimum? B1.3 What do we mean by cost optimum? Note the cost optimum in the chart. At what volume do we find the cost optimum?

The company is facing a rebuild of one of the departments to improve the physical working environment. The measure will increase the fixed costs by 1,500,000,-.

B1.4 What effect does the measure have on the cost-optimal and profit-optimal production volume? Explain how you arrived at your answer.

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