Tutorial 8

Q8 Total fixed costs

Annual Lease payments 45000
Annual Rent 55000
Other fixed costs 130000
Total fixed cost 230000

Variable Cost (Materials etc.) 200

Q9 total revenue 20X Q10

Number of units X
Total Cost 40000+12X

Profit=Total revenue - cost

Fo 10,000 profit
20X-(40000+12X)=10000
X 6250
Total cost 230000+200* X
Revenue 220 * X
Break even for selling price of 220
230000+200*X=220*X
X 11500

Profit at Max Capacity

160000*220-230000+160000*200 90000

Breakeven for sellin price of 215 15333.33

Breakeven for selling price of 210 23000

Fixed Cost = 300,000

Selling price per unit = Rs. 72
Variable cost per unit = Rs. 42
The maximum capacity = 20,000

Breakeven 10000
profit margin at 15,000 units 150000

profit margin at max capacity 300000