*Problem 1: Publisher of Economics Textbook*
a. Total Cost (C) = Fixed Costs + Variable Costs
C = 225,000 + 55x
b. Sales Revenue (R) = Price per Book × Number of Books Sold
R = 100x
c. Profit = Sales Revenue – Total Cost
= 100(3000) – (225,000 + 55(3000))
= 300,000 – 225,000 – 165,000
= 300,000 – 390,000
= -90,000 (Loss)
d. Break-Even Point (BEP) = Fixed Costs / (Price – Variable Costs)
= 225,000 / (100 – 55)
= 225,000 / 45
= 5,000 books
e. Graphical method: Plot C and R on the same axes. The BEP is where C = R.
*Problem 2: Manufacturer of Staplers*
a. BEP = Fixed Costs / (Price – Variable Costs)
= 15,000 / (12 – 2)
= 15,000 / 10
= 1,500 staplers
Graphical method: Plot C and R on the same axes. The BEP is where C = R.
b. Total Cost at BEP = Fixed Costs + Variable Costs
= 15,000 + 2(1,500)
= 15,000 + 3,000
= 18,000
c. Total Sales Revenue at BEP = Price × Number of Staplers
= 12 × 1,500
= 18,000
d. Profit at BEP = 0 (by definition)
*Problem 3: Publisher of Solution Manual*
a. Sales Revenue (R) = Price per Manual × Number of Manuals Sold
R = 29.99x
b. Total Cost (C) = Fixed Costs + Variable Costs
C = 15,000 + 4x
c. Profit = Sales Revenue – Total Cost
= 29.99(2000) – (15,000 + 4(2000))
= 59,980 – 15,000 – 8,000
= 59,980 – 23,000
= 36,980
d. BEP = Fixed Costs / (Price – Variable Costs)
= 15,000 / (29.99 – 4)
= 15,000 / 25.99
≈ 577 manuals
e. Graphical method: Plot C and R on the same axes. The BEP is where C = R.
*Problem 4: AirAsia*
a. Sales Revenue (R) = Average Fare × Number of Passengers
R = 59x
b. Total Cost (C) = Fixed Costs of Passengers + Fixed Costs
C = 24x + 12,000,000
c. Profit = Sales Revenue – Total Cost
= 59(420,000) – (24(420,000) + 12,000,000)
= 24,780,000 – 10,080,000 – 12,000,000
= 24,780,000 – 22,080,000
= 2,700,000
d. BEP = Fixed Costs / (Average Fare – Variable Cost per Passenger)
= 12,000,000 / (59 – 24)
= 12,000,000 / 35
≈ 342,857 passengers
e. Graphical method: Plot R and C on the same axes. The BEP is where C = R.