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  • 11 C Assignment 3

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    Icewallow Come
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    The document provides information about the costs of producing a magazine, including fixed costs of $2400 per month for printing machinery and $1600 per month for renting a print factory, as well as a $3 per magazine cost for materials and wages. It includes a table calculating total costs, revenue, and profit/loss at different monthly magazine production levels, from which it can be determined that the magazine publisher will break even at 5000 magazines per month. It asks the reader to plot total cost and total revenue curves on a graph and label the profit and loss areas.

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    The document provides information about the costs of producing a magazine, including fixed costs of $2400 per month for printing machinery and $1600 per month for renting a print factory, as well as a $3 per magazine cost for materials and wages. It includes a table calculating total costs, revenue, and profit/loss at different monthly magazine production levels, from which it can be determined that the magazine publisher will break even at 5000 magazines per month. It asks the reader to plot total cost and total revenue curves on a graph and label the profit and loss areas.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    11 views1 page

    11 C Assignment 3

    Uploaded by

    Icewallow Come
    The document provides information about the costs of producing a magazine, including fixed costs of $2400 per month for printing machinery and $1600 per month for renting a print factory, as well as a $3 per magazine cost for materials and wages. It includes a table calculating total costs, revenue, and profit/loss at different monthly magazine production levels, from which it can be determined that the magazine publisher will break even at 5000 magazines per month. It asks the reader to plot total cost and total revenue curves on a graph and label the profit and loss areas.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Beaconhouse School System

    Business Studies: 7115 Class XI - C Ring Road Campus

    Below are different level of output of a new magazine. The producer of the magazine intends to
    price each copy for sale at 5$ each. The cost of hiring printing machinery is $2400 per month and
    the print factory costs $1600 per month to rent. The cost of material and wages per magazine is
    $3. There is no other cost in this simple example. Use a calculator to complete the table with
    costs, revenue and profit/loss.

    $ $ $ $ $ $
    Magzines Per Total Fixed Total Variable
    Total Cost Average Cost Total Revenue Profit/Loss
    month Cost Cost
    0 4000 0 4000 0 0 -4000
    1000
    2000
    3000
    4000
    5000 4000 15000 19000 3.8 25000 6000
    6000
    7000
    8000

    1. At what level of output will the magazine publisher breakeven?


    2. Plot and label the following curves on a graph with magazines per month along the bottom
    axis and costs and revenue ($) in $1000 intervals along the side axis. This needs to extend up
    to $40,000.
    a) Total Cost
    b) Total Revenue
    3. Label those areas that represent profit/loss on your graph.

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