Assigment#3_BD309_Dimas_Aditya_Prabowo

1. a. Determine the equation relating the total cost to the number of books published.

Known Data:
Variable Expense per Book (V) = $55
Fixed Production Expense (F) = $225,000
Selling Price per Book (P) = $100
Number of Books (variable) = x

Total cost (TC) is the accumulation of fixed costs (F) and total variable expenses (V⋅x).
TC=F+V⋅x
TC=225,000+55x
The formula that relates total cost to the number of books printed is:

TC=225,000+55x

b. Determine the equation relating the sales revenue to the number of books sold.

Revenue from sales (R) is obtained by multiplying the price per book (P) by the number of books sold (x).

R=P⋅x
R=100x
The formula that relates sales revenue to the total number of books sold is:

R=100x

c. Determine the profit if 3000 books are published and sold.

Profit (π) is obtained by subtracting total costs from total revenue, where x=3,000.

Calculating Total Revenue (R):
R=100x
R=100⋅(3,000)=$300,000

Calculating Total Cost (TC):
TC=225,000+55x
TC=225,000+55⋅(3,000)
TC=225,000+165,000=$390,000

Calculating Profit (π):
π=R−TC
π=300,000−390,000=−$90,000

The profit for publishing and selling 3,000 books is -$90,000 (or, a loss of $90,000).

d. Algebraically determine the BEP for this process.

The break-even point occurs when total revenue equals total expenses, or when profit equals zero.

R=TC
100x=225,000+55x
Move variable costs to the left side:
100x−55x=225,000
45x=225,000

Solve for x:
x= 225,000 : 45
x=5,000
The Break-Even Point in units is 5,000 books.

To calculate the Break-Even Point in monetary terms (R at BEP):
R=100x
R=100⋅(5,000)=$500,000

2.  a. Determine the BEP for this process both graphically and algebraically.

Known Data:
Selling Price per Stapler (P) = $12
Variable Cost per Stapler (V) = $2
Fixed Production Cost (F) = $15,000

BEP (unit) = Fixed costs / selling price per unit – variable costs per unit
BEP ( unit ) = F / P-V
BEP ( unit ) = 15.000 / 12-2
BEP ( unit ) = 15.000 / 10

BEP ( unit ) = 1.500 unit

b. Determine : the total cost of the process at the BEP

Using X=1,500 units:

Total Cost (TC)=Fixed Cost+(Variable Cost x X)
TC = 15.000 + (2 x 1.500)
TC = 15.000 + 3.000

TC = $18.000

c. Determine the total sales revenue of the process at the BEP

X = 1.500 unit

Total Revenue (R) = Selling Price × x
R = 12 x 1.500

R= $18.000

d. Calculate the profit at the BEP

Profit = R – TC
Profit = 18.000 – 18.000

Profit =$0

3. a. Determine the equation relating the sales revenue to the number of manuals published.

Given:
Selling Price (P): $29.99
Variable Cost (V): $4
Fixed Cost (F): $15,000
Number of Books (x)