Estimating fixed cost and variable cost


Assignment:

Q1.Given the following data, calculate a) BEP x ; b) BEP $ ; and c) the profit at 100,000 units
P = $8 / units V =$4/ unit F = $50,000

Q2.You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $.05.
a) What is the break-even point in dollars?
b) What is the break-even point in units?

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