Họ và tên: Nguyễn Thế Bảo Chi

MSSV: 31211024052
Lớp: Sáng thứ 3 – N1.401
Bài làm:
Problem 2:
1. Break-even point = 25000
2. Break-even point = $10000000/($1700-$1300) = 25000
3. Break-even point refers to the point where total costs are just as high as the total
revenue
Let Q be the number of units produced and sold at break-even point
Total fixed cost + Total variable cost = Total cost = Total revenue
 Total fixed cost = Total revenue – Total variable cost
 Total fixed cost = Q*(Unit revenue - Marginal cost)
 Q = Fixed cost/(Unit revenue - Marginal cost)
4.

Q = 20000
Break-even point = 25000
Loss: $2000000
5. Profit > 0 only when Total Revenue > Total Cost
 Case 1: If Product Quantity (Q) > Sales Forecast (s)
 Total Revenue = s*Unit Revenue = 30000*$1700 = $51000000
We have: Total Revenue > Total Cost = Total fixed cost + Total variable cost
 $51000000 > $10000000 + Q*$1300
 Q < ($51000000 – $10000000)/$1300 < 31539
 Case 2: If Product Quantity (Q) < Sales Forecast
  Total Revenue = Q*Unit Revenue = Q*$1700
We have: Total Revenue > Total Cost = Total fixed cost + Total variable cost
 Q*$1700 > $10000000 + Q*$1300
 Q > 25000
Therefore, Profit > 0 when 25000 < Product quantity < 31539
 Profit = Total Revenue – Total cost
If 25000 < Q < 31539 then 400 < Profit < 1998700
Problem 3: Make or Buy
1.

Let Surplus equals Total purchase price minus Total making cost
If Surplus > 0 then Making internally is better else Purchase is better
According to the result, the Water Sports Company should produce the outboard
motors because if purchasing them from a vendor, the company will lost $200000
2. Let Q be the number can be produced and sold
Break-even point = $1000000/($2000 – $1600) = 2500
Case 1: The make option is better (Surplus > 0)
Total making cost < Total purchase price
 $1000000 + Q*$1600 < Q*$2000
 Q > 2500
Case 2: The purchase option is better (Surplus < 0)
Total making cost > Total purchase price
 $1000000 + Q*$1600 > Q*$2000
 Q < 2500