Math Problem Statement
Solution
The question in the image is an economic problem that deals with total cost (TC) and total revenue (TR) in determining the break-even point (pulang pokok) and analyzing profitability at a certain production level.
The provided equations are:
- Total Cost (TC):
- Total Revenue (TR):
Where:
- is the number of units produced.
Part 1: Finding the Break-even Point
At the break-even point, total revenue equals total cost: Substitute the given equations for TR and TC: Now, solve for :
Thus, the break-even point occurs when the company produces 200 units.
Part 2: Analyzing for 150 Units of Production
Next, we calculate the total cost and total revenue if the company produces 150 units.
- Total Revenue at :
- Total Cost at :
At 150 units, the total cost is 35,000, and the total revenue is 30,000. Therefore, the company is operating at a loss of 5,000 because the total revenue is less than the total cost.
Summary:
- Break-even point: 200 units.
- At 150 units: The company incurs a loss of 5,000.
Would you like more detailed explanations or have any questions about the steps?
Here are 5 related questions for practice:
- How do you calculate profit or loss at any production level?
- What happens if the company produces more than 200 units?
- How would the break-even point change if fixed costs increased?
- What is the significance of the break-even point in business analysis?
- How does the relationship between fixed costs and variable costs impact profitability?
Tip: When analyzing break-even points, always keep in mind that producing less than the break-even quantity results in a loss, while producing more leads to profit.
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Math Problem Analysis
Mathematical Concepts
Algebra
Break-even Analysis
Cost and Revenue Functions
Formulas
TR = TC
TC = 20,000 + 100Q
TR = 200Q
Theorems
Break-even Point Theorem
Suitable Grade Level
College Level (Economics/Business)
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