Professional Documents
Culture Documents
BUSINESS MATHEMATICS
Exercises
Chapter 2
Break-Even Point
Analysis
Problem # 1
Try out this problem for your self
BEP units = F /( P V)
= 5000 / ( 5 1.50)
= 5000/ 3.5
= 1, 428.57
BEP units 1, 429 units
BEP units = F /( P V)
= 100,000 / ( 50 30)
= 100,000 / 20
= 5, 000
BEP units 5, 000
(a) Draw two graphs plotting profit as a function of the number of rides for the two firms.
Answer
(Johnson = 50,000 rides, $1, 500,
000)
Answer
(Smith = 100,000 rides, $3,
000, 000)
Answer