# 800000

700000

Order 1
x
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
15000

Total Cost
200000
235000
270000
305000
340000
375000
410000
445000
480000
515000
550000
585000
620000
655000
690000
725000

Revenue
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
550000
600000
650000
700000
750000

Profit
-200000
-185000
-170000
-155000
-140000
-125000
-110000
-95000
-80000
-65000
-50000
-35000
-20000
-5000
10000
25000

600000

Total Cost
200000
220000
240000
260000
280000
300000
320000
340000
360000
380000
400000
420000
440000
460000

Revenue
0
40000
80000
120000
160000
200000
240000
280000
320000
360000
400000
440000
480000
520000

Profit
-200000
-180000
-160000
-140000
-120000
-100000
-80000
-60000
-40000
-20000
0
20000
40000
60000

700000

500000
400000
300000
200000
100000

Order 2
x
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000

600000

500000

400000

300000

200000

100000

revenue = 50x breakeven profit = 50 x . 13334 .000 fixed cost = 200.200000 .( 200.200000 375000 .20x = 20x .000.000 variable cost = 35x.35x .200000 x > = 200000 / 15 13333. 15x .200000 15x .( 200000 + 20x ) 40x .200000 20(20000) .200000 175000 order 2 fc = 200000 vc = 20x revenue = 40x profit = 40x .200000 >= 0 50 .33 15 ( 25000 ) . 000 +35x ) Order 1 since x = 25.14000 15000 480000 500000 560000 600000 100000 80000 100000 Order 1 x = 25.200000 200000 Order 2 is more profitable.

BREAKEVEN CHART : ORDER 1 800000 700000 600000 500000 400000 300000 200000 100000 0 0 1000 2000 BREAKEVEN CHART : ORDER 2 700000 600000 500000 400000 300000 200000 100000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 .

100000 0 0 1000 2000 3000 4000 Order 2 20x .200000 >=0 x >= 200000 / 20 10000 10000 5000 6000 7000 8000 9000 10000 11000 12000 .

Total Cost Revenue 12000 13000 14000 15000 Total Cost Revenue .

12000 13000 14000 15000 .

( 1000 + 25x ) ====> 15x .67 = 67 revenue = 67 x 40 = 2680 No.Fc VC Revenue 1000 25 40 x = number of shirts Total Cost 1000 + 25x Revenue 40x Profit 40x . x 0 10 20 30 40 50 60 70 80 90 100 Total Cost 1000 1250 1500 1750 2000 2250 2500 2750 3000 3250 3500 .1000 revenue = 40 x 20 = 800 variable = 25 x 20 = 500 breakeven = 1000 / 15 = 66.

4500 Revenue 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 4000 3500 3000 2500 Total Cost 2000 Revenue 1500 1000 500 0 0 10 20 30 40 50 60 70 80 90 100 .

Total Cost Revenue .

60 ) 60 y=0. x = 40 x = 0. 40 ) 20 10 x y 30 0 20 Z 0 40 20 0 120 120 140 10 .4x + 2y <= 120 y 4x + 2y <= 120 70 x=0. y = 40 ( 40. y = 60 ( 0. 0 ) 50 2x + 2y <= 80 40 30 y =0. 0 ) ( 0. x = 30 ( 30.

20 30 40 50 x 2x + 2y <= 80 .

Y = 20 Y=0. 0 ) . 16. X = 5 (0.Minimize. Y >= 0 2x + 3y <= 50 X=0.67 ( 0. C = 4x + 5y Subject to 2x + 3y <= 50 4x + y <= 20 X.67 ) Y=0. 20 ) ( 5. 0 ) 4x + y <= 20 X=0. Y = 50/3 = 16. X = 25 ( 25.

Y 4x + y <= 20 20 15 10 5 0 5 x 25 5 1 10 y 0 0 16 15 C 100 20 84 20 25 .

X .