# In its first year, “Abol Buna Co” had the following experience Sales = 25,000 units Selling price = br. 100 TVC = br. 1,500,000 TFC = br. 350,000 Required: 1. Develop Revenue, cost &

## Nice job, cutting off your post mid-sentence ...

As is always the case,

cost = TFC + TVC

revenue = price * quantity

profit = revenue - cost

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## To develop the revenue, cost, and profit for "Abol Buna Co" based on the given information, we need to calculate the following:

1. Revenue: Revenue is calculated by multiplying the number of units sold by the selling price per unit.

Revenue = Sales * Selling Price

Given:

Sales = 25,000 units

Selling Price = br. 100

Revenue = 25,000 * 100 = br. 2,500,000

Therefore, the revenue for the first year is br. 2,500,000.

2. Total Variable Cost (TVC): Total Variable Cost refers to the cost that changes with the level of production. It includes direct material costs, direct labor costs, etc.

Given:

TVC = br. 1,500,000

The TVC for the first year is br. 1,500,000.

3. Total Fixed Cost (TFC): Total Fixed Cost refers to the cost that remains constant regardless of the level of production. It includes costs like rent, salaries, etc.

Given:

TFC = br. 350,000

The TFC for the first year is br. 350,000.

Now, let's calculate the cost and profit:

a. Total Cost (TC): Total Cost is the sum of Total Variable Cost (TVC) and Total Fixed Cost (TFC).

TC = TVC + TFC

TC = 1,500,000 + 350,000 = br. 1,850,000

The Total Cost for the first year is br. 1,850,000.

b. Profit: Profit is calculated by subtracting Total Cost (TC) from Revenue.

Profit = Revenue - Total Cost

Profit = 2,500,000 - 1,850,000 = br. 650,000

The Profit for the first year is br. 650,000.