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  1. #1
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    Post wordsum

    a manufacturer can produce a broom at a cost of R5 and can sell it for R15. the daily fixed cost for the production of these brooms is R300. suppose he sells all the brooms that he produces each day. which og the following atatements is/are true?

    A. the breake-even point is (30,450).

    B. if the manufacturer produces and sell 40 brooms in a day he will make a profit of R600.

    C. if the manufacturer produces and sells 20 brooms in a day he will make a loss of R100.
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  2. #2
    Grand Panjandrum
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    Quote Originally Posted by Alexander View Post
    a manufacturer can produce a broom at a cost of R5 and can sell it for R15. the daily fixed cost for the production of these brooms is R300. suppose he sells all the brooms that he produces each day. which og the following atatements is/are true?

    A. the breake-even point is (30,450).

    B. if the manufacturer produces and sell 40 brooms in a day he will make a profit of R600.

    C. if the manufacturer produces and sells 20 brooms in a day he will make a loss of R100.
    The total daily costs for N units of production are 5N+300 Rand.
    Income form selling N units is 15N Rand.

    Thus total Profit is:

    P(N) = 15N - 5B - 300 = 10N - 300.

    Break even is when P(N)=0, which occurs when N=30.

    If N=40, the P(40) = 100 Rand.

    If N=10, then P(10) = -200 Rand

    RonL
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