Question

What revenue would the organisation need to maintain profit and

cover losses? use calculations to support answer.

Answer 1

To maintain profit and cover losses, the organization needs to generate enough revenue to at least cover the losses experienced. Additional revenue equal to the losses would help the organization break even. Calculating the revenue needed to maintain profit and cover losses can be done by comparing total costs to total revenues and determining the difference.

Step-by-step explanation:

Based on the given information, the organization would need to generate enough revenue to cover its losses and maintain a profit. In the example provided, the firm experiences losses of $5 when producing five units. This means that the organization would need to generate at least $5 in additional revenue to cover these losses and break even. To calculate the revenue needed to maintain profit and cover losses in other scenarios, you would need to compare the total costs to the total revenues and determine the difference.