In it's frist year, "Abol Buna Co"had the following experience
A,sales =25000 units
B, selling price=br.100
C,TVC=br.1500000
D, TFC=br.350000
Then
1, develop R,C,& Profit
2,,find the BEP
3,convert the cost equaction
4,find the BE revenue
5,if Profit had been br.500000 what wuold be sale volume (revenue)& quantity
6, Profit been if sales are br.2000000
1. Develop Revenue, Cost, and Profit
Revenue (R) = Sales * Selling Price = 25,000 units * 100 Br = 2,500,000 Br
Total Cost (C) = Total Variable Cost (TVC) + Total Fixed Cost (TFC) = 1,500,000 Br + 350,000 Br = 1,850,000 Br
Profit (P) = Revenue - Total Cost = 2,500,000 Br - 1,850,000 Br = 650,000 Br
2. Find the Break-Even Point (BEP)
Break-Even Point (in units) = TFC / (Selling Price - (TVC / Sales)) = 350,000 Br / (100 Br - (1,500,000 Br / 25,000 units))
BEP (in units) = 350,000 Br / (100 Br - 60 Br) = 350,000 Br / 40 Br = 8,750 units
3. Convert the Cost Equation
Cost Equation: C = TFC + TVC * Q
Where Q represents the number of units sold.
C = 350,000 Br + (1,500,000 Br / 25,000 units) * Q
C = 350,000 Br + 60 Br * Q
4. Find the Break-Even Revenue
Break-Even Revenue = Break-Even Point (in units) * Selling Price = 8,750 units * 100 Br = 875,000 Br
5. If Profit had been 500,000 Br, what would be the Sale Volume (Revenue) and Quantity?
New Profit = 500,000 Br
New Revenue = New Profit + Total Cost = 500,000 Br + 1,850,000 Br = 2,350,000 Br
New Quantity = New Revenue / Selling Price = 2,350,000 Br / 100 Br = 23,500 units
6. Profit if Sales are 2,000,000 Br
New Revenue = 2,000,000 Br
New Profit = New Revenue - Total Cost = 2,000,000 Br - 1,850,000 Br = 150,000 Br
To calculate the requested values, we'll need to use the formulas and equations related to revenue, cost, profit, and breakeven point.
1. To develop the Revenue (R), Cost (C), and Profit equations, we'll use the following formulas:
Revenue (R) = Selling Price x Sales Volume
Cost (C) = Total Fixed Costs (TFC) + Total Variable Costs (TVC)
Profit = Revenue - Cost
Given values:
A. Sales = 25000 units
B. Selling Price = br. 100
C. TVC = br. 1500000
D. TFC = br. 350000
Using the formulas above, we can calculate:
R = br. 100 x 25000 = br. 2500000
C = br. 350000 + br. 1500000 = br. 1850000
Profit = br. 2500000 - br. 1850000 = br. 650000
Therefore:
R = br. 2500000
C = br. 1850000
Profit = br. 650000
2. To find the Breakeven Point (BEP), we'll use the formula:
BEP = TFC / (Selling Price - Variable Cost per unit)
Given values:
TFC = br. 350000
Selling Price = br. 100
Variable Cost per unit = TVC / Sales Volume
Calculating the variable cost per unit:
Variable Cost per unit = br. 1500000 / 25000 = br. 60
Now we can find the BEP:
BEP = br. 350000 / (br. 100 - br. 60) = br. 350000 / br. 40 = 8750 units
Therefore, the Breakeven Point is 8750 units.
3. To convert the cost equation, we can rewrite it as:
Cost (C) = (Variable Cost per unit x Sales Volume) + Total Fixed Costs (TFC)
We already calculated the Variable Cost per unit as br. 60 and TFC as br. 350000.
Therefore, the converted cost equation is:
C = (br. 60 x Sales Volume) + br. 350000
4. To find the Break Even Revenue, we can use the formula:
Break Even Revenue = Selling Price x Breakeven Point
Given values:
Selling Price = br. 100
Breakeven Point = 8750 units
Using the formula:
Break Even Revenue = br. 100 x 8750 = br. 875000
Therefore, the Break Even Revenue is br. 875000.
5. If the Profit is br. 500000, we can calculate the sales volume (revenue) and quantity.
Let's assume the sales volume (revenue) is X and quantity is Y.
Profit = Revenue - Cost
br. 500000 = (Selling Price x X) - ((Variable Cost per unit x Y) + TFC)
br. 500000 = (br. 100 x X) - ((br. 60 x Y) + br. 1850000)
We need to find the values of X and Y that satisfy this equation.
6. If the sales are br. 2000000, we can calculate the profit.
Let's assume the profit is P.
Profit = Revenue - Cost
P = (Selling Price x X) - ((Variable Cost per unit x Y) + TFC)
To find the profit, we need the values of X and Y.
To calculate key financial metrics for "Abol Buna Co," we can follow these steps:
1. Calculate Revenue (R):
R = Sales * Selling price
= 25,000 * 100
= br. 2,500,000
2. Calculate Total Variable Costs (TVC):
TVC = TVC per unit * Sales
= 1,500,000 * 25,000
= br. 37,500,000
3. Calculate Total Fixed Costs (TFC):
TFC = br. 350,000
4. Calculate Profit:
Profit = R - (TVC + TFC)
= br. 2,500,000 - (br. 37,500,000 + br. 350,000)
= br. -35,350,000
5. Calculate Break-Even Point (BEP):
BEP (in units) = TFC / (Selling price - TVC per unit)
= 350,000 / (100 - 1,500,000)
= 184.21 (rounded up to 185 units)
6. Convert the cost equation:
Cost equation (per unit) = TVC per unit + TFC / Sales
= 1,500,000 + 350,000 / 25,000
= br. 65 per unit
7. Calculate Break-Even Revenue:
BE Revenue = BEP (in units) * Selling price
= 185 * 100
= br. 18,500
8. If Profit is br. 500,000, calculate sales volume (revenue) and quantity:
Profit = R - (TVC + TFC)
R = Profit + TVC + TFC
R = 500,000 + 37,500,000 + 350,000
= br. 38,350,000 (sales volume)
Quantity = Sales volume / Selling price
= 38,350,000 / 100
= 383,500 units
9. If sales are br. 2,000,000, calculate Profit:
Profit = R - (TVC + TFC)
= 2,000,000 - (25,000 * 65 + 350,000)
= br. 750,000