Cost function-revenue function together to break-even point

Assignment Help Financial Management

Reference no: EM13879419

A firm producing poultry feed finds that the total cost C in dollars for producing and selling x units is given by C = 20x + 100. Management plans to charge $24 per unit for the feed. a. Graph the cost function and the revenue function together to show the break-even point. b. How many units must be sold to break even? c. What is the profit if 100 units of feed are sold? d. How many units must be sold to produce a profit of $900?

Reference no: EM13879419

Questions Cloud

What does the bond currently sell for : A particular bond has 8 years to maturity. It has a face value of $1,000. It has a YTM of 7% and the coupons are paid semi annually at a 10% annual rate. What does the bond currently sell for?

Bonds on the market making annual payments : Essary Enterprises has bonds on the market making annual payments, with ten years to maturity, a par value of $1,000, and selling for $968. At this price, the bonds yield 6.9 percent. What must the coupon rate be on the bonds?

About the actual proposals : In his senior year at a major mid western university, Billy Wilson had been the third runner up for the fabled Heismann Trophy. The trophy goes to the outstanding football player in America and is presented annually by the New York Athletic Club. Cal..

Based on the net present value : A project has cash flows of -$119,000, $52,800, $60,200, and $33,100 for years 0 to 3, respectively. The required rate of return is 12 percent. Based on the net present value of _____, you should _____ the project.

Cost function-revenue function together to break-even point : A firm producing poultry feed finds that the total cost C in dollars for producing and selling x units is given by C = 20x + 100. Management plans to charge $24 per unit for the feed. Graph the cost function and the revenue function together to show ..

New sausage system with an installed cost : Dog Up! Franks is looking at a new sausage system with an installed cost of $455,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $65,000. If the ta..

What is the amount of the annual operating cash flow : A project will require $498,000 for fixed assets and $58,000 for net working capital. The fixed assets will be depreciated straight-line to a zero book value over the five year life of the project. What is the amount of the annual operating cash flow..

What is the net present value of this project : A new melding machine is expected to produce operating cash flows of $68,000 a year for six years. At the beginning of the project, inventory will decrease by $14,700, accounts receivables will increase by $5,500, and accounts payable will increase b..

What is the net present value of this expansion project : The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion requires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project req..

User Account

All Pages