nformation on a business is given below. Variable Expenses: Raw material expense: 250 TL / piece Auxiliary equipment expense: 150 TL / piece Electricity expenses: 100 TL / piece Spare parts expense: 75 TL / piece Other variable expenses: 125 TL / piece Fixed costs: Depreciation, interest and insurance expenses: 75 000 TL Labor and personnel expenses: 250 000 TL Other fixed expenses: 115 000 TL Production capacity: 2000 pcs / month Sale price: 1600 TL / piece According to the above, a) Find the break-even point as the production quantity? b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?

nformation on a business is given below. Variable Expenses: Raw material expense: 250 TL / piece Auxiliary equipment expense: 150 TL / piece Electricity expenses: 100 TL / piece Spare parts expense: 75 TL / piece Other variable expenses: 125 TL / piece Fixed costs: Depreciation, interest and insurance expenses: 75 000 TL Labor and personnel expenses: 250 000 TL Other fixed expenses: 115 000 TL Production capacity: 2000 pcs / month Sale price: 1600 TL / piece According to the above, a) Find the break-even point as the production quantity? b) Find the amount that the business has to produce in order to make a profit of 500 000 TL / month?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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