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A company has a linear total cost function and has determined that over the next

three month it can produce 1000 units at a total cost of 300000.this same
manufacture can produce 2000 units at a total cost of 400000.the units sell for 180
each:
a)determine the revenue cost and profit functions using q for number of units
300 000 = 1000X + C ..(i)
400 000 = 2000X + C ..(ii)
ii) i)
100 000 = 1000X
X = 100
Total cost ; Y = 100q +200 000
Revenue = 180* q
Profit = Revenue Total cost = 180q -100q -200 000

b)what is the fixed cost? : 200 000


c) what is the marginal cost? 100
d)find the break even quantity?
180q -100q- 200 000 = 0
80 q = 200 000
q = 2500
e)what is the break even dollar volume of sales?
2500 * 180 = 450 000

A company has a linear total cost function and has determined that it has a total
cost of 36836 on sales of 15000.this same company has a total cost of 41536 on
sales of 25000 find
a)

determine the revenue cost and profit functions using s for sales volume

Where,
d = selling price
x = variable cost/unit
Profit = revenue total cost
= s*d sX C
Quantity q1 for making sales 15000;

15000 = q1*d q1 = 15000/d


25000 = q2 *d q2 = 25000/d
Total cost Y = X*q +C
36836 = X* (15000/d) +C .i)
41536 = X *(25000/d)+C ii)
ii)- i)
4700 = 10 000(X/d)
X/d = 0.47
b)the variable cost per dollar of sale = 0.47
c)the fixed cost
36836 = X* (15000/d) +C
C = 29786 [X/d = 0.47]
d)the variable cost on sales of 72000
Y = X * q3 + 29786
Y = X* (72000/d) +29786
Y = X/d *72000 +29786
Y = 0.47 *72000 + 29786
Y = 33840 +29786
Y = 63626
The variable cost is = 33840
e)the total cost on sales of 72000
total cost 63626
f)the break even dollar volume of sales
Profit = 0 = revenue total cost = 72000 -63626 = 8374
g)the net profit before taxes on sales of 80000

Profit = 80000 0.47*80000 -29786 = 12614