Biz Maths

Linear embody, tax, profit serve up and breakeven. M & M is a company that helps to produce hard disk casings for sunny Company. The grinder can produce 5000 units per day. The mill has a fix greet of $15000 per day and for every unit produced, the inconsistent equal is $15 per unit. The selling price of every unit produced is $35 per unit. 1)What is the wide day-to-day comprise of the factory? numerate cost function is C(x) = Total cost of manufacturing X units of the product. C(x) = CX + F, where F is a fixed cost and CX is a varying cost of producing X units of the products. Total cost function = $15(5000) + $15000 = $ 90,000 2)What is the nonchalant tax enhancement of the factory? Revenue function is R(x) = Total revenue accomplished from the gross sales of X units of the product. R(x) =SX Total revenue function = $35(5000) = $175,000 3)What is the daily profit function of the factory? public-service corporation fu nction is P(X) = Total profit realized from manufacturing and selling x units of the product. P(x) = R(x) C(x) = (s c)x F.7 Total Profit function = $175,000 - $90,000 = $85,000 4)What is the daily break-even level of the factory? The level of production, X?, the profit is zero.

P(X?) = R(X?) C(X?) = 0 ? R(X?) = C(X?). The point P? (X?, P?) is cognise as the breakeven point. If X < X? ? Loss. If X > x? ? Profit. 35(X) = 15(X) + $15000 35X 15X = 15000 X = 750 units / day Breakeven is calculation of the sales account book required to bosom the follow cost, below which the production would be unprofitable and ab ove which it would be profitable. Breakeven ! analysis focuses on the kin between fixed cost, variable cost and profit which watch above. It is important to a business, as the business need to take to the woods out what is the volume of sales it need to achieve to cover it costs so that they would non make losses.If you want to get a full essay, fix up it on our website: BestEssayCheap.com

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