Question

Top notch consultants ltd has a fixed cost is sh 15000 for it's products and a variable cost given by 140+0.04x shillings per unit, where x is the total number of units and the selling price of the product is given by 300-6x shillings per unit. Formulate the function of the total cost and total revenue.Find the break even point.

Answer 1

F(x) = 15000 + (140 + 0.04x)

F(x) = 300 - 6x

15000 ÷ (300 - 6x - (140 + 0.04x))

Step-by-step explanation:

Given that :

Fixed cost = 15000

Variable cost = 140+0.04x

Selling price = 300 - 6x

Number of units = x

Total cost :

Fixed cost + variable cost

15000 + (140 + 0.04x)

Total revenue :

300 - 6x

F(x) = 300 - 6x

Break even point :

Total cost = total revenue

Break even point (units) :

Fixed cost ÷ (selling price per unit - variable cost per unit)

15000 ÷ (300 - 6x - (140 + 0.04x))