Data Data

Unit revenue Data Total revenue 51,000,000

Fixed cost 10,000,000 Total fixed cost 10,000,000
Variable cost 1,300 Total variable cost 39,000,000
Sales forecast Profit (Loss) 2,000,000

Production quantity Break-even point 25,000

1 Use graphical procedure
BEP Total revenue Total cost
70,000,000
0 0 10,000,000
5,000 8,500,000 16,500,000 60,000,000
10,000 17,000,000 23,000,000
15,000 25,500,000 29,500,000 50,000,000
20,000 34,000,000 36,000,000
40,000,000
25,000 42,500,000 42,500,000
30,000 51,000,000 49,000,000 30,000,000
35,000 59,500,000 55,500,000
20,000,000

10,000,000

0
5,000 10,000 15,000
Total reven
2 Use algebraic procedure
Unit revenue 1700 Fixed cost 10000000
Variable cost 1300
Total revenue Total cost
10,000 15,000 20,000 25,000 30,000 35,000
Total revenue Total cost
4
Data Data
Unit revenue 1,700 Total revenue 51,000,000
Fixed cost 10,000,000 Total fixed cost 10,000,000
Variable cost 1,300 Total variable cost 39,000,000
Sales forecast 30,000 Profit (Loss) 2,000,000

Production quantity 30,000 Break-even point 25,000

5
Data Data
Unit revenue 1700 Total revenue 34000000
Fixed cost 10000000 Total fixed cost 10000000
Variable cost 1300 Total variable cost 26000000
Sales forecast 30000 Profit (Loss) -2000000

Production quantity 20000 Break-even point 25000

Profit = -$2 millions

Break-even point =<Production quantity <= sales forecast => prodution quantity = 30000
tity = 30000
BUY
Fixed cost 5000000 Total revenue 60000000
Variable cost 750 Total fixed cost 5000000
Purchase price 500 Total marginal cost 37500000
Total marginal cost 1250 Profit 17500000
Unit revenue 2000

sales quantity 30000 break-even point 6666.66666667

MAKE BUY
unit revenue 900 Variable cost (decreas 750
Fixed cost 50000 Total varible cost 1250
Variable cost 400 Fixed cost 5000000
sales forecast 30000 Purchase price 500
Total varible cost 1250 unit
production quantity 200 Profit 2000

sales qun
2.5