in its first year abolbuna company had the folloing experance sale=2500,tvc =1500000,tfc=350000,selling price 100 birr to find revnue ,cost,profit?
idot kow this qastion?
again?
revenue = price * quantity = 100*2500
cost = tvc + tfc = 1,500,000 + 350,000 = 1,850,000
profit = revenue - cost
Looks like they lost money, unless you have a typo in there
To calculate the revenue, cost, and profit for Abolbuna Company in its first year, we can use the following formulas:
Revenue = Selling Price * Quantity Sold
Cost = Total Fixed Cost + Total Variable Cost
Profit = Revenue - Cost
Given:
Sales: 2,500 units
Total Variable Cost (TVC): 1,500,000
Total Fixed Cost (TFC): 350,000
Selling Price: 100 birr
Calculations:
Revenue = Selling Price * Quantity Sold
Revenue = 100 * 2,500 = 250,000 birr
Cost = Total Fixed Cost + Total Variable Cost
Cost = 350,000 + 1,500,000 = 1,850,000 birr
Profit = Revenue - Cost
Profit = 250,000 - 1,850,000 = -1,600,000 birr
Therefore, the revenue for Abolbuna Company in its first year is 250,000 birr, the cost is 1,850,000 birr, and the profit is -1,600,000 birr. The negative value for profit indicates a loss.
To find the revenue, cost, and profit for the Abolbuna company, we can use the following formulas:
1. Revenue = Selling Price x Quantity Sold
2. Cost = Total Fixed Costs + (Variable Cost per Unit x Quantity Sold)
3. Profit = Revenue - Cost
Given the following information:
- Quantity Sold (Sale) = 2,500
- Total Fixed Costs (TFC) = 350,000
- Variable Cost per Unit (TVC) = 1,500,000
- Selling Price = 100 Birr
Let's calculate:
1. Revenue = Selling Price x Quantity Sold
Revenue = 100 Birr x 2,500
Revenue = 250,000 Birr
2. Cost = Total Fixed Costs + (Variable Cost per Unit x Quantity Sold)
Cost = 350,000 + (1,500,000 x 2,500)
Cost = 350,000 + 3,750,000
Cost = 4,100,000 Birr
3. Profit = Revenue - Cost
Profit = 250,000 Birr - 4,100,000 Birr
Profit = -3,850,000 Birr
The revenue for Abolbuna company in its first year is 250,000 Birr, the cost is 4,100,000 Birr, and the profit is -3,850,000 Birr. Since the profit is negative, it indicates that the company incurred a loss in its first year.