Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Help me, I'm a first year student doing distance-learning. I need the method (https://www.askmehelpdesk.com/showthread.php?t=745317)

  • Apr 21, 2013, 01:53 PM
    nassriano
    help me, I'm a first year student doing distance-learning. I need the method
    "FIRED-UP" produce specialist fireworks which they sell at R 300 per box. Their fixed costs are R 20 000 and the variable cost of a box of a fireworks is R 50. What is their break-even production level?
  • Apr 21, 2013, 02:14 PM
    teacherjenn4
    We help with homework, but we won't do it for you. Post your attempt and then someone will come along to help you.
  • Apr 22, 2013, 07:23 AM
    pready
    Here is your formula:
    PX = VX + FC

    P = Unit Selling Price
    V = Unit Variable Price
    FC = Fixed Costs
    X = Sales in Units

    Just plug in your numbers and solve for X.
  • Apr 22, 2013, 09:52 AM
    nassriano
    Thanks
    Pready !

    your formula, helped me.

    PX = VX + FC

    P = Unit Selling Price
    V = Unit Variable Price
    FC = Fixed Costs
    X = Sales in Units
    solution
    300x = 20000 + 50x
    300x - 50x = 20000
    250x = 20000(divide 250 both sides to get x)
    x = 80
    well done !

  • All times are GMT -7. The time now is 06:51 PM.