Computer Company's Break Even Point: 30000 Computers

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    Break even Point
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Discussion Overview

The discussion revolves around calculating the break-even point for a computer company planning to produce and sell 30,000 computers at a price of $700 each. Participants explore the relationship between revenue, fixed costs, and variable costs, focusing on the application of these concepts in a business context.

Discussion Character

  • Homework-related, Mathematical reasoning

Main Points Raised

  • One participant outlines the formula for break-even analysis, stating that at the break-even point, revenue minus the sum of fixed and variable costs equals zero.
  • Another participant reiterates the formula and emphasizes the importance of calculating revenue based on the number of computers sold multiplied by the selling price.
  • Several participants express confusion about the final answer and seek clarification, indicating a desire for a straightforward solution.
  • A participant responds to the confusion by asking for more details about what specifically is unclear, suggesting that they will not provide a direct answer but will guide the discussion instead.

Areas of Agreement / Disagreement

There is no consensus on the final answer to the break-even point, as participants are still seeking clarification and expressing confusion about the calculations involved.

Contextual Notes

Participants have not provided specific assumptions or detailed calculations, and there may be unresolved steps in the mathematical reasoning required to reach the break-even point.

Suraphel
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Dear All,
Please help me.
A computer company plans to produce 30000 computer next year. They will sell for \$700 each. The fixed cost of operation care \$5000000 total variable cost are \$6000000. What is the break even point?
 
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at the break even point, revenue - (fixed cost + variable cost) = 0

You are given both fixed and total variable costs ... revenue is number of computers sold time \$700
 
skeeter said:
at the break even point, revenue - (fixed cost + variable cost) = 0

You are given both fixed and total variable costs ... revenue is number of computers sold time \$700

A little bit confused please put the final answer.
Thanks in advance.
 
Suraphel said:
A little bit confused please put the final answer.
Thanks in advance.
What are you confused about? Please let us know.. It'll give us a better idea about how to respond. We are not going to simply post the answer though you have essentially been give the solution already.

-Dan
 

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