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Math Help - Break even point ( urgent )

  1. #1
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    Break even point ( urgent )

    Toys 4 u manufactures a toy that it sells for $30 each. The variable cost per toy is $10 and the fixed cost for this product line are $100 000 per year .

    a) what is the break even point in units?

    b) what is the break even sales revenue ?
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    Quote Originally Posted by diehardmath4 View Post
    Toys 4 u manufactures a toy that it sells for $30 each. The variable cost per toy is $10 and the fixed cost for this product line are $100 000 per year .

    a) what is the break even point in units?
    the break even point is where total cost = revenue, so the profit is zero.

    can you take it from there?

    b) what is the break even sales revenue ?
    well, once you do (a) this part is just $30 times the answer
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  3. #3
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    this is what i attempted for part a

    given = MP ( market price )
    VC ( variable cost )
    FC ( fixed cost )
    P ( profit )
    q ( quantity )

    MP = 30
    VC = 10
    FC = 100 000
    P = 0

    Tc = FC + VC (q )

    TC = 100 000 + 10(q)

    Sub in values into 1

    0 = R - tc

    ( mp ) (q) - tc

    0 - ( 10 ) (q) - tc

    0 = 10q - [ 100 000 + q ]

    0 = 10q -100 000 - q

    100 000 = 9q

    q = 11 111 . 11

    i got the answer wrong but not sure where i went wrong or what i did wrong
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    is up to his old tricks again! Jhevon's Avatar
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    Quote Originally Posted by diehardmath4 View Post
    this is what i attempted for part a

    given = MP ( market price )
    VC ( variable cost )
    FC ( fixed cost )
    P ( profit )
    q ( quantity )

    MP = 30
    VC = 10
    FC = 100 000
    P = 0

    Tc = FC + VC (q )

    TC = 100 000 + 10(q)

    Sub in values into 1

    0 = R - tc

    ( mp ) (q) - tc

    0 - ( 10 ) (q) - tc

    0 = 10q - [ 100 000 + q ]

    0 = 10q -100 000 - q

    100 000 = 9q

    q = 11 111 . 11

    i got the answer wrong but not sure where i went wrong or what i did wrong
    Mp = 30 you said

    so Mp - Tc = 30q - (100 000 + 10q) = 0

    that's what you must solve
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  5. #5
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    so after MP - TC = 30q - (100 000 + 10q)= 0

    you get MP - TC = 30Q - 100 000 - 10q

    MP - TC = 20q - 100 000

    when you bring the - 100 000 to the other side what happens to MP - TC ?
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  6. #6
    is up to his old tricks again! Jhevon's Avatar
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    Quote Originally Posted by diehardmath4 View Post
    so after MP - TC = 30q - (100 000 + 10q)= 0

    you get MP - TC = 30Q - 100 000 - 10q

    MP - TC = 20q - 100 000

    when you bring the - 100 000 to the other side what happens to MP - TC ?
    Mp - Tc is the same as 30q - (100 000 + 10q). so forget about Mp - Tc, your goal is to find q, and so you need only concentrate on the equation

    30q - (100 000 + 10q) = 0
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