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Your Company has fix costs of 30,000 EUR and variable costs of 15 EUR/u. The selling price of the products manufactured by the Company
Your Company has fix costs of 30,000 EUR and variable costs of 15 EUR/u. The selling price of the products manufactured by the Company is given by the following equation: price = 70 - 0.02x 2a - Based on the previous data, create a table showing the total costs, the revenues and the profits for a level of production of 200, 400, 600, 800, 1000, 1200, 1400, 1600, 1800, 2000, 2200 & 2400 units. 2b - Find the quantity of items produced and sold in order to break even. Discuss critically this result. 2c - Find the quantity of items produced and sold in order to maximize revenues, and in order to maximize profits. Discuss critically these results.
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2a Units Produced Total Costs Revenues Profits 200 30300 13000 17300 400 31300 20000 11300 600 32300 ...Get Instant Access to Expert-Tailored Solutions
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