in its first year"abol Buna Co"had the following experience
sales=25000
TVC=br.1500000
selling price=br.100
TFC=br.350000
To better understand the experience of "Abol Buna Co" in its first year, we can look at some key financial figures provided:
1. Sales: The company generated 25,000 units in sales during its first year. This indicates the total quantity of products or services sold by the company.
2. Total Variable Costs (TVC): The total variable costs incurred by the company in its first year amount to br. 1,500,000. Variable costs are expenses that change proportionally with the level of production or sales. Examples of variable costs include raw materials, labor costs, and direct production costs.
3. Selling Price: The selling price of each unit sold by "Abol Buna Co" is br. 100.
4. Total Fixed Costs (TFC): The company had br. 350,000 in total fixed costs during its first year. Fixed costs are expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.
With this information, we can calculate some financial ratios and metrics to further assess the company's performance.
1. Gross Profit: Gross profit is the revenue generated from sales minus the cost of goods sold (COGS). COGS is calculated by multiplying the number of units sold by the variable cost per unit. In this case, the gross profit can be calculated as follows:
Gross Profit = Sales - (Number of units sold * Variable cost per unit)
Gross Profit = 25,000 * br. 100 - br. 1,500,000
Gross Profit = br. 2,500,000 - br. 1,500,000
Gross Profit = br. 1,000,000
2. Net Profit: Net profit is the revenue generated from sales minus all expenses, including both variable and fixed costs. In this case, the net profit can be calculated as follows:
Net Profit = Gross Profit - Total Fixed Costs
Net Profit = br. 1,000,000 - br. 350,000
Net Profit = br. 650,000
These calculations provide an overview of "Abol Buna Co's" financial performance in its first year.