A firm manufactures and markets a product that sells for Birr 20 per unit. Fixed costs associated

with activity total Birr 40,000 a month, while variable cost per unit is Birr 10. A maximum of
10,000 units can be produced and sold

assignment

answer the above question

50

I find alla answers

i do not have money

To determine the break-even point for the firm, we need to know the number of units the firm needs to sell in order to cover its fixed costs.

First, let's calculate the contribution margin per unit. The contribution margin is the difference between the selling price per unit and the variable cost per unit. In this case, the selling price is Birr 20 per unit and the variable cost is Birr 10 per unit. Therefore, the contribution margin per unit is Birr 20 - Birr 10 = Birr 10.

Next, we can calculate the fixed costs per unit. Since the total fixed costs are Birr 40,000 and the maximum number of units that can be produced and sold is 10,000, we divide the total fixed costs by the maximum number of units to get the fixed costs per unit. In this case, the fixed costs per unit are Birr 40,000 / 10,000 = Birr 4.

Now, we can calculate the break-even point in units. The break-even point is the number of units the firm needs to sell in order for its revenue to equal its total costs (fixed costs plus variable costs). To calculate this, we divide the fixed costs by the contribution margin per unit. In this case, the break-even point in units is Birr 40,000 / Birr 10 = 4,000 units.

Therefore, the firm needs to sell 4,000 units in order to break even.

and what is your question?

they make a profit when revenue is greater than cost, so for x units sold, you want
20x > 40,000 + 10x
and x must not be more than 10,000