2. In its first year, “ABOL BUNA” Company had the following experience.

Sales = 25,000 units Selling price = Birr 100
Total variable cost = Birr 1,500,000 TFC = Birr 350,000
a) Develop revenues, cost, and profit functions for the company in terms of quantity.
b) Find the break-even point in terms of quantity.
c) Convert the cost equation in terms of quantity in to a cost equation in terms of revenue.
d) Find the break-even revenue.
e) If profit had been Birr 500,000 what would have been the sales volume (revenue) and the quantity of sales.
f) What would have been the profit if sales were Birr 2,000,000?
3. A retail co plans to work on a margin of 44% of retail price and to incur other variable costs of 4%. If it expects fixed cost of Birr 20,000,

6 answers

  1. We do not do your homework for you. Although it might take more effort to do the work on your own, you will profit more from your effort. We will be happy to evaluate your work though.

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  2. Answer

  3. ans

  4. ansewr

  5. it is good but it anwers not clear

  6. 2 b

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