What is the price per unit that the distributer pays?
Need to know what the revenue streams are in order to work out where breakeven is.
I have some problem solving break even in spreadsheet, If anyone would be kind enough to help me I would be very thankful
The firm’s costs are as follow:
Overheads “a”= £800,000
Labour cost per unit “b”= £100
Raw material per unit “c”= £258
Advertisement cost are “D” = £40,000 per period on advertising and are capable of producing up to 1000 units in each period.
Total cost function is expressed by
The demand function isTC= a+bQ+cQ+D
Where j=4000 k=3 and m = 3 D= advertisement costP= j-kQ + m√D
·What is the breakeven level of output?
· What is the breakeven level of output If the cost increase by 10%?
· If advertisement cost doubles what is the breakeven level of output?
P.S I would be happy If anyone can solve it in excel or otherwise put it in words with formula “how to solve it in excel” because I also have to make diagrams. Thank you
I'm not sure where you're going after the total. I mean the price function is simple enough to work out but what does that mean?
I did a simple division of total/price function which is probably wrong on many levels
If you want it in ODS (openoffice) let me know and I'll try getting it to you that way as these forums do not like FOSS (probably from a technical standpoint)
first of all i thank you both or your time
i have got the total cost and demand funtion but i dont know the price.. if price was given i whould have solved it myself. i did it the same way you are telling me. total cost/P = price, but i am not sure if thats write or not becuause the break even diagram looked funny. iam new to this so i cant manage to add excel file
i cant open the tex file i whould be happy if u send me open office file plz.