221k views
5 votes
Auto Robot Ltd manufactures two products P & Q.

i) Calculate the B. E. P. of each product in units and in shillings.
a) P: 20,000 units, 200,000 shs; Q: 17,000 units, 442,000 shs
b) P: 25,000 units, 250,000 shs; Q: 18,000 units, 468,000 shs
c) P: 22,000 units, 220,000 shs; Q: 15,000 units, 390,000 shs
d) P: 18,000 units, 180,000 shs; Q: 20,000 units, 520,000 shs

User Shvalb
by
7.6k points

1 Answer

6 votes

Final answer:

The question pertains to the calculation of the Break-Even Point (BEP) for products P & Q and the impact of free trade on the equilibrium price and quantity of cameras. Without detailed cost information, BEP calculation is not possible. The concept of free trade entails countries with lower production costs exporting and those with higher costs importing.

Step-by-step explanation:

The question is concerned with calculating the Break-Even Point (BEP) in units and shillings for two products, P & Q, manufactured by Auto Robot Ltd. To calculate the BEP for any product, we would need to know the fixed costs, variable costs per unit, and the selling price per unit. However, as the information provided does not include these details, we would not be able to accurately calculate the BEP for either product without additional information.

Additionally, the provided scenario involving the effect of free trade on the equilibrium price and quantities (P and Q) of cameras between two countries suggests a discussion on international trade, price determination, and the impact of trade on domestic supply and demand.

In a situation where free trade occurs and the price of a product aligns at 56.36 Baht, the countries that can produce the product at a lower cost than the free-trade price will become exporters, while countries that have a higher cost of production will become importers. The specific quantities for export and import would be determined by each country's supply and demand curves at the free-trade price.

User James Allingham
by
8.0k points