1.The Formula for quantity of output at Break Even where profit is 0 i.e.
total cost equals
to total revenue is QBEP = FC/ R-VC. Where FC is fixed cost R for revenue VC for variable cost In the given case FC = 80000 R= 4000 VC = 400 QBEP = FC/R-VC = 80000/(4000-400) =80000/3600 =22.22 =22 CAMERAS 2. For Q(QUANTITY) =100 CAMERAS, the Profit (P) would be P = Q(R-VC)-FC = 100(4000-400)-80,000 = 100X 3600-80,000 = 360000-80,000 = 280,000/3. For P (Profit) =50,000 the quantity (Q) of the cameras will be Q = (FC+P)/ (R-VC) = (80,000+50,000)/(4000-400) = 130,000/3600 = 36.11 = 36 CAMERAS