Biz Maths

Linear embody, tax, profit serve up and breakeven. M & M is a company that helps to produce hard disk casings for cheerful Company. The grinder can produce 5000 units per day. The factory has a dogged greet of $15000 per day and for every unit produced, the inconsistent monetary value is $15 per unit. The selling price of every unit produced is $35 per unit. 1)What is the wide day-to-day bell of the factory? numerate cost function is C(x) = Total cost of manufacturing X units of the product. C(x) = CX + F, where F is a fixed cost and CX is a inconstant cost of producing X units of the products. Total cost function = $15(5000) + $15000 = $ 90,000 2)What is the periodical tax receipts of the factory? Revenue function is R(x) = Total revenue accomplished from the gross sales of X units of the product. R(x) =SX Total revenue function = $35(5000) = $175,000 3)What is the daily profit function of the factory? avail function i s P(X) = Total profit realized from manufacturing and selling x units of the product. P(x) = R(x) C(x) = (s c)x F.7 Total Profit function = $175,000 - $90,000 = $85,000 4)What is the daily break-even level of the factory? The level of production, X?, the profit is zero.

P(X?) = R(X?) C(X?) = 0 ? R(X?) = C(X?). The point P? (X?, P?) is cognise as the breakeven point. If X < X? ? Loss. If X > x? ? Profit. 35(X) = 15(X) + $15000 35X 15X = 15000 X = 750 units / day Breakeven is calculation of the sales pot required to grok the follow cost, below which the production would be unprofitable and above which it would be profitable. Breakeven analysis focuses on the birth between fixed cost, variable cost and! profit which nurture above. It is important to a business, as the business need to campaign out what is the volume of sales it need to achieve to cover it costs so that they would non make losses.If you want to get a full essay, fix up it on our website: OrderEssay.net

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