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    iczech1506
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    The document analyzes the costs and revenues of a machine to determine the breakeven point, profitability of adding advertisements, and profitability of using the machine with and without ads. It finds that: 1) The breakeven point for the machine is 750 units per year. 2) Adding advertisements requires 87 additional units per month to cover ad costs but would be profitable. 3) Using the machine with advertisements would be more profitable than using it without ads or the normal operation.

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    The document analyzes the costs and revenues of a machine to determine the breakeven point, profitability of adding advertisements, and profitability of using the machine with and without ads. It finds that: 1) The breakeven point for the machine is 750 units per year. 2) Adding advertisements requires 87 additional units per month to cover ad costs but would be profitable. 3) Using the machine with advertisements would be more profitable than using it without ads or the normal operation.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views7 pages

    Project 2

    Uploaded by

    iczech1506
    The document analyzes the costs and revenues of a machine to determine the breakeven point, profitability of adding advertisements, and profitability of using the machine with and without ads. It finds that: 1) The breakeven point for the machine is 750 units per year. 2) Adding advertisements requires 87 additional units per month to cover ad costs but would be profitable. 3) Using the machine with advertisements would be more profitable than using it without ads or the normal operation.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 7

    C(x)=m*x+b b-fixed m-variable

    b=360000+540000 m=760+30+1/4*40
    b=900000 m=800

    C(x)= 800*x+900000
    R(x)=2000*x
    BEP=R(x)=C(x)
    BEP=2000*x=800*x+900000
    BEP= 1200x=900000
    BEP=750

    750/365
    2 per day
    per month=70
    annualy =70*12=840
    with machine without machine
    C(840)=700*840+1000000 1572000
    1588000

    R(840)=2000*840 1680000
    1680000

    P(840)=R-C
    92000 108000 -16000

    Ans. No, its not profitable


    40*12=480 12*20000=240000
    840+480=1320 900000+240000=1140000
    with ads without ads
    C=800*1320+1140000 2196000 1572000

    R=2000*1320 2640000 1680000

    P=R-C 444000 108000 336000

    Ans.Yes, it is profitable
    with ads
    800x+1140000
    without ads
    800x+900000

    1140000-900000= 240000

    2000-profit from one operation

    2000*x-[800*x+1140000]=108000
    1200*x-1140000=108000
    1200x=1248000
    x=1040 86.66667 per month

    Ans. 87 extra operations are needed to cover the ads expenses.


    with machine with ads
    C(840)=700*840+1000000 C=800*1320+1140000 2196000
    1588000
    R=2000*1320 2640000
    R(840)=2000*840
    1680000 P=R-C 444000

    P(840)=R-C
    92000

    with machine and ads normal


    C=700*1320+1240000 2164000 1572000

    R=2000*1320 2640000 1680000

    P= R-C 476000 108000

    Ans. Yes, it is more profitable.


    368000

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