REVIEW PROBLEMS 3rd PART TOPIC (b)
4.01 – 4.02 – 4.03 – 4.04 – 4.05 – 4.06 – 4.07 – 4.08 – 4.09 – 4.10 – 4.11 – 4.12 – 4.13 – 4.14 – 4.15 – 4.16 – 4.17 – 4.18 – 4.19 – 4.20 – 4.21 – 4.22 – 4.23 – 4.24 – 4.25 
REVIEW_4.01b. The firm Landa presents the following information related to production, costs and sales revenue OUTCOMES: BEP = 466.67; Profit =  4,750; P = 57.17  REVIEW 4.02b  SOLUTIONS: a, b y c
Calculate the firm’s breakeven point, explain the economic meaning of the obtained outcome and indicate in what units it’s expressed
Calculate the firm’s profit or loss if it produces and sells 150 units of product
Determinate the sale price that the firm should set ir it want its breakeven point to be in 150 units of production
PRODUCED UNITS 
SALES REVENUE 
FIXED COSTS 
TOTAL COSTS 
0 
0 
7,000 
7,000 
100 
2,550 
7,000 
8,050 
200 
5,100 
7,000 
9,100 
300 
7,650 
7,000 
10,150 
400 
10,200 
7,000 
11,200 
500 
12,750 
7,000 
12,250 
REVIEW_4.02b. The firm Bay’s Manufactures, Ltd acquires its raw material at an unit price of 3€/kg. The firm needs 10.7 tonnes. For each realised order, the firm has ones expenses of 500€ and the average time to receive the order is six days. The account department has calculated that each stored kilograme means an annual total cost of 7€. The firm works 350 days annually. – We want to know: OUTCOMES: Optimal order quantity = 1,236.35; Time 40.44 days; Stock level to do a new order = 183.43  REVIEW 4.03b  SOLUTIONS: a, b y c
The optimal order quantity
How often do we need to realise the order, and
Which is the stock level to do a new order
REVIEW_4.03b. According to the data of the accounts of X, Ltd: the total cost are 125,000 m.u., the fixed costs are 10,000 m.u., the sales revenue are 230,000 m.u., the firm has sold 100,000 units of product: OUTCOMES: BEP = 8,695.65; REVIEW 4.04b  SOLUTIONS: a y b
Calculate the breakeven point, explain the economic meaning of the outcome and indicate in which units it is expressed
Make the chart of the total, variable and fixed costs and revenue for the following values of Q: inactivity, breakeven point, sales units
REVIEW_4.04b. A firm wants to know if its productivity has increased or has decreased in the year 200809. In order to that, we know that during the year 2008 the firm has manufactured 100,000 products of series A, being its unit price of 1.2€ and 50,000 products of series B, being its unit price of 3.4€. To manufacture the products have worked five workers with 1,500 hours each one at 9€/hour and the firm has consumed 5,000 units of materials at 10€/unit. During 2009 the manufacture of the products has increased 2% and the consumption of factors has increased 5%. The number of workers and the prices have not changed: OUTCOMES: P_{2008} = 2.47; P_{2009} = 2.40; GPI = 0.9717  REVIEW 4.05b  SOLUTIONS: a y b
Calculate the productivity of each year
Calculate the global productivity index
REVIEW_4.05b. A corporation wants to sell 20,000 units of a certain type of jeans. In order to that it can produce them itself or to acquire them to a textile factory. The acquisition price of the jeans to the textile factory is 3€/pair. To produce these units the corporation has ones total costs of 40,000€, belonging 30,000 to variable costs. Determine: OUTCOMES: AC = 60,000, PC = 40,000  REVIEW 4.06b  SOLUTIONS: a y b
The best option
Chart
REVIEW_4.06b. The firm RASURSA had last year a staff of 100 workers, each one of them worked 1,200 hours, reaching a production of 3,000,000 produced units of the product X. During this year it has had a staff of 120 workers, each one of them has worked 1,250 hours, being the production of this year 3,100,000 produced units of the product X: OUTCOMES: P_{0} = 25; P_{1} = 20.67  REVIEW 4.07b  SOLUTIONS: a y b
Calculate the labour productivity in the periods 0 and 1
Analyze the evolution of the labour productivity
REVIEW_4.07b. Calculate the breakeven point of a firm and the time to obtain it if its sales volume is 130,000€, being 10,000 the number of produced and sold units and 100,000€ the total costs, belonging 25,000€ to fixed costs. Express the solution in euros and in units of product. OUTCOMES: BEP = 4,545.45 p.u.; BEP = 59,090.85€; Time = 5 months and 14 days  REVIEW 4.08b  SOLUTIONS 4.07b
REVIEW_4.08b. The firm Furniture, Ltd wants to know its productivity, in order to that it wants to know the productivity of both two periods (0 and 1), and the global productivity index according to the following data: OUTCOMES: P_{0} = 119.02; P_{1} = 140.25; GPI = 1.1784  REVIEW 4.09b  SOLUTIONS 4.08b
Factors of production 

Factors 
Quantities (F) 
Prices (f) 

Period 0 
Period 1 
Period 0 
Period 1 

Labour 
1,000 h/man 
1,100 h/man 
9€ 
10€ 
Machinery 
3,000 h/mac 
2,500 h/mac 
30€ 
32€ 
Material 
5,000Kgs. 
4,000 Kgs. 
0.7€ 
0.9€ 


Production 

Products 
Quantities (Q) 
Prices (P) 

Period 0 
Period 1 
Period 0 
Period 1 

Chairs 
100,000 
120,000 
50€ 
55€ 
Tables 
80,000 
70,000 
90€ 
95€ 
REVIEW_4.09b. Determine the sales volume in which a firm that produces and sells the product X, loses 5,000 m.u. if: OUTCOME = 80,000 – REVIEW 4.10b  SOLUTION 4.09b
The fixed costs are 13,000 m.u.
The variable costs are 90% above sales
REVIEW_4.10b. A firm has the following information about its economic activity: the operating total cost of its activity was 50,000€. The produced and sold units were 3,000 physical units. The firm’s Share Capital is 300,000€, calculate: OUTCOMES: P = 26.67; BEP = 1,000  REVIEW 4.11b  SOLUTIONS: a y b
The sale price of the products to obtain a profitability of 10% above the firm’s share capital
Knowing that 30% of the total costs are fixed costs and the rest are variable costs, determine the breakeven point
REVIEW_4.11b. A firm produces shelves with an industrial component. The firm can obtain this component in two ways: either manufacturing the component or acquiring it to another company that sells it at 70€ each unit. The production in the own factory would mean an annual fixed cost of 100,000€ and the unit variable cost of each component would be 65€. Each shelves needs 30 industrial components to its production. To what annual volume of production is it preferable to manufacture the industrial component or to buy it? OUTCOME = 666.67 – REVIEW 4.12b  SOLUTION 4.11b
REVIEW_4.12b. A firm tries to launch to the market a new chair. It has two alternatives: a) To manufacture them, which will mean a fixed cost of 180,000€ and an unit variable cost of 300€/unit and b) To acquire them to a factory and to market them with its own brand, which would mean an acquisition cost of 1,200€/unit: OUTCOMES: a) 200; Profit =  9,000 – REVIEW 4.13b  SOLUTIONS: a, b y c
Explain in which case the firm is going to manufacture the chairs and when is going to buy them
If the firm produces 190 units, which will be the obtained profit or loss?
Make the chart
REVIEW_4.13b. A firm, that produces computers, thinks about to produce or to acquire the computer circuit board. In the market the circuit board can by acquired at 200€. It makes a research to know the production costs, with the following data: the fixed costs would be 800,000€ and the unit variable cost would be 2€. The firm produces and sells 4,000 computers annually. What would have to do the firm, either to produce it or to buy it? OUTCOMES: AC = 800,000; PC = 808,000 – REVIEW 4.14b  SOLUTIONS 4.13b
REVIEW_4.14b. The firm “Tricycle” produces bicycles. This firm sells 180,000 bicycles annually, at a price of 300€ each one. Its unit margin (the difference between the sale price and the unit variable costs) is 60€ and its total fixed costs are 3,000,000€. OUTCOMES: BEP = 50,000; Increase = 9,000,000 – REVIEW 4.15b  SOLUTIONS: a y b
Calculate the breakeven point, interpreting the obtained outcome
In order to try to improve its profit, the firm has decided to increase the price of the bicycles in 50€. How is going to affect this decision to the firm's profit, if the number of units sold is maintained?
REVIEW_4.15b. A firm manufactures 30,000 units of the product A at 40€/unit and 40,000 units of product B at 25€/unit. The consumed factors to manufacture these products are in the following table: OUTCOMES: P_{1} = 10; P_{2} = 20; P_{3} = 30; P_{4} = 26.67 REVIEW 4.16b  SOLUTIONS 4.15b
FACTORS 
A 
B 
COST 
Labour 
3,000 hours man 
2,000 hours man 
30€ 
Machines 
1,000 hours machine 
1,500 hour machine 
50€ 
Calculate the productivity of each factor per product.
Explain its meaning and compare them
REVIEW_4.16b. The firm “Solsuero” manufactured and consumed the following products and factors for 2008 and 2009. OUTCOMES: Profit = 5,600,000; P_{0} = 1.67; P_{1} = 1.60; GPI = 0.9581 – REVIEW 4.17b  SOLUTIONS: a y b

Year 2008 
Prices 2008 
Year 2009 
Product A 
100,000 p.u. 
40€/p.u. (Sale) 
120,000 p.u. 
Product B 
200,000 p.u. 
50€/p.u. (Sale) 
180,000 p.u. 
Factor X 
150,000 Kgs. 
20€/Kg. (Cost) 
130,000 Kgs. 
Factor Y 
180,000 Kgs. 
30€/Kg (Cost) 
200,000 Kgs. 
We want to know:
Calculate the profit of the year 2008 if the firm has sold all the produced units.
Calculate the global productivity of each year and compare them
REVIEW_ 4.17b. The sales volume in 2009 is 500,000€, being its production 10,000 units and its production costs the following:
Labour ..................................................................200,000€
Raw material.........................................................100,000€
Fixed costs............................................................ 80,000€
Determine the breakeven point, expressing the outcome in euros and in units of product and comment the obtained outcome. OUTCOMES: BEP = 4,000 p.u.; BEP = 200,000€  SOLUTIONS 4.17b
REVIEW_4.18b. The firm “M” manufactured and sold last year 27,000 tables being its total revenue 900,000€. The fixed costs were 35% above total revenue and the variable costs were 30% above this revenue. Calculate its breakeven point both in physical units and in monetary units. OUTCOMES: 13,501.93 p.u.; BEP = 450,019.33 m.u. SOLUTION 4.18b
REVIEW_4.19b. The firm X produced and sold 29,000 units of kitchens being its total revenue 18 million euros. The fixed cost were 5,000,000€. The firm's profit has been 8,000,000€. Calculate the breakeven point and comment its meaning. OUTCOMES: BEP = 11,153.74 SOLUTION 4.19b
REVIEW 4.20b. A firm produces electronic components being the production cost: C = 50Q + 20; where Q is the number of produced components and C is the production cost in euros: OUTCOMES: a) See the solution; b) See the solution; c) 50.21; d) 19,980; e) 0.57 SOLUTION 4.20b
Which is the fixed cost and the unit variable cost of production?
Which is the average cost of production according to the number of produced units?
If the firm produces 95 units. Which is the cost per produced unit?
If the unit sale price is 70€. Which is the obtained profit of the firm for Q = 1,000 units?
Below which number of units of Q, the firm would have a loss being the sale price 85€/unit?
REVIEW 4.21b. A firm that is going to begin its working has to decide about the size of the technological equipment to install, being able to choose between two sizes. The production cost of the small equipment is TC_{S} = 60 + 10Q, and the production cost of the big one is TC_{B} = 200 + Q OUTCOMES: See solutions SOLUTION 4.21b
Which is the fixed cost of each equipment?
Which is the unit variable cost of each equipment?
If it plans to produce 300 units of Q. Which is the best equipment to install?
REVIEW 4.22b. In a firm, the sales volume is 25,000 units that generates a total revenue of 430,000€ that involves a fixed cost of 210,000€ and a total variable cost of 150,000€. How many units would I have to sell if I want a profit of 300,000€? OUTCOME: 45,535.71 SOLUTION 4.22b
REVIEW 4.23b. A firm produces chairs. The productive process includes the assembly and the painting. It produced 10,000 chairs last year, total costs were 1,820,000 €, being 1,500,000 fixed costs. The firm is think about the possibility of buying the chairs previously assembled this year. This option means to acquire the chairs at 165 € per unit. What decision must the firm make if the output of this year is 11,500 chairs? Calculate the production costs and the acquisition costs OUTCOMES: Production costs = 1,868,000; Acquisition costs = 1,897,500 SOLUTION 4.23b
REVIEW 4.24b. A firm had a total amount of sales of 5,000,000 € last year, being the sale price of each unit of product 290 €. Total variable costs were in that year 1,250,000 and total fixed costs 2,300,000 € OUTCOMES: BEP = 10,574.71; PROFIT = 233,750 SOLUTION 4.24b
Calculate the breakeven point and explain the economic meaning of the outcome
Calculate the profit of the loss that the firm would have if it had a sales of 9,500 physical units
REVIEW 4.25b. A firm produces two products, the model OLIVAR and the model NARANJO. The data of the output in 2009 are in the following table: OUTPUT: GP = 1.46 SOLUTION 4.25b

Cost of the workers 
Cost of the machines 
Units OLIVAR 
Units NARANJO 

Year 2009 
75.000,00 € 
57.000,00 € 
810 p.u. 
980 p.u. 
If the prices in 2009 were 130 € for the model OLIVAR and 90 for the model NARANJO, calculate the global productivity
SOLUTION 4.01b.
Q = TFC : (P – UVC)
TC = TFC + (UVC x Q)
8,050 = 7,000 + UVC x 100
8,050 – 7,000 = 100 UVC
1,050 = 100 UVC
1,050 : 100 = UVC = 10.5 monetary units
TR = P x Q
2,550 = P x 100
2,550 : 100 = P = 25.5 monetary units
Q = 7,000 : (25.5 – 10.5) = 466.67 physical units
If we produce and sell more than 466.67 physical units we are going to obtain a profit, if we produce and sell less than this quantity we are going to have a loss
Profit = TR – TFC – UVC x Q
Profit = P x Q – TFC – UVC x Q
Profit = 25.5 x 150 – 7,000 – 10.5 x 150 =  4,750 monetary units
Q = TFC : (P – UVC)
150 = 7,000 : (P – 10.5)
150 x (P – 10.5) = 7,000
150 P – (150 x 10.5) = 7,000
150 P – 1,575 = 7,000
150 P = 7,000 + 1,575
150 P = 8,575
P = 8,575 : 150 = 57.17 monetary units
SOLUTION 4.02b.
Q* = sqrt [(2 x D x S) : H]
Q* = sqrt [(2 x 500 x 10,700) : 7] = 1,236.35 kgs.
10,700.00 kgs.     350 days
1,236.35 kgs.     x days
x = 40.44 days = 40 days
10,700 kgs.     350 days
x kgs.     6 days
x = 183.43 kgs.
SOLUTION 4.03b.
Q = TFC : (P – UVC)
TC = TFC + (UVC x Q)
125,000 = 10,000 + UVC x 100,000
125,000 – 10,000 = 100,000 UVC
115,000 = 100,000 UVC
115,000 : 100,000 = UVC = 1.15 monetary units
TR = P x Q
230,000 = P x 100,000
230,000 : 100,000 = P = 2.3 monetary units
Q = 10,000 : (2.3 – 1.15) = 8,695.65 units of product
Qmax = 8,695.65 x 2 = 17,391.30 but as we sell 100,000 => Qmax = 100.000
TRmax = 2.3 x 100.000 = 230.000
TR_{0} = 2.3 x 0 = 0
TR_{BEP} = 2.3 x 8,695.65 = 20,000 monetary units
TC_{0} = 10,000 + (1.15 x 0) = 10,000 monetary units
TC_{BEP} = 10,000 + (1.15 x 8,695.65) = 20,000 monetary units
TVC_{0} = 1.15 x 0 = 0
TVC_{BEP} = 1.15 x 8,695.65 = 10,000 monetary units
SOLUTION 4.04b.
GP_{0} = [(100,000 x 1.2) + (50,000 x 3.4)] : [(5 x 1,500 x 9) + (5,000 x 10)]
GP_{0} = 290,000 : 117,500 = 2.47
GP_{1} = (290,000 x 1.02) : (117,500 x 1.05)
GP_{1} = 295,800 : 123,375 = 2.40
GPI_{20082009} = 2.40 : 2.47 = 0.9717 => Decreases 2.83%
SOLUTION 4.05b.
AC = P x Q
AC = 3 x 20,000 = 60,000€
PC = 40,000€
TFC = TC – TVC
TFC = 40,000 – 30,000 = 10,000€
UVC = TVC : Q
UVC = 30,000 : 20,000 = 1.5€
Q = TFC : (P – UVC)
Q = 10,000 : (3 – 1.5) = 6,666.67 p.u.
Qmax = 6,666.67 x 2 = 13,333.33 more or less 15,000
ACmax = 3 x 15,000 = 45,000€
AC_{0} = 3 x 0 = 0
AC_{BEP} = 3 x 6,666.67 = 20,000.01€
PC_{0} = 10,000 + 1.5 x 0 = 10,000€
PC_{BEP} = 10,000 + 1.5 x 6,666.67 = 20,000.05€
SOLUTION 4.06b.
P_{0} = 3,000,000 : (100 x 1,200) = 25 produced units / hour man
P_{1} = 3,100,000 : (120 x 1,250) = 20.67 produced units / hour man
Last year we produced 25 units per each hour man and now we produce only 20.67 units, therefore the labour productivity has decreased
TR = P x Q
130,000 = P x 10,000
130,000 : 10,000 = P = 13€
TC = TFC + UVC x Q
100,000 = 25,000 + UVC x 10,000
100,000 – 25,000 = 10,000 UVC
75,000 = 10,000 UVC
75,000 : 10,000 = UVC = 7.5€
Q = TFC : (P – UVC)
Q = 25,000 : (13 – 7.5) = 4,545.45 physical units
TR = 13 x 4,545.45 = 59,090.85€
10,000.00  12 m
4,545.45  x m x = 5.45 m
1.00 m  30 d
0.45 m  x d x = 13.5 = 14 d.
The firm is going to reach the breakeven point in 5 months and 14 days
GP_{0} = [(100,000 x 50) + (80,000 x 90)] : [(1,000 x 9) + (3,000 x 30) + (5,000 x 0.7)]
GP_{0} = 12,200,000 : 102,500 = 119.02
GP_{1} = [(120,000 x 50) + (70,000 x 90)] : [(1,100 x 9) + (2,500 x 30) + (4,000 x 0.7)]
GP_{1} = 12,300,000 : 87,700 = 140.25
GPI_{01} = 140.25 : 119.02 = 1.1784
Profit = TR– TFC – TVC
 5,000 = TR – 13,000 – 0.9 TR
13,000 – 5,000 = TR – 0.9 TR
8,000 = 0.1 TR
8,000 : 0.1 = TR = 80,000€
SOLUTION 4.10b.
Profit = P x Q – TC
300,000 x 0.1 = P x 3,000 – 50,000
30,000 = 3,000 P – 50,000
30,000 + 50,000 = 3,000 P
80,000 = 3,000 P
80,000 : 3,000 = P = 26.67€
TFC = 50,000 x 0.3 = 15,000€
TVC = 50,000 x 0.7 = 35,000€
UVC = 35,000 : 3,000 = 11.67€
Q = 15,000 : (26.67 – 11.67) = 1,000 physical units
Q = TFC : (P – UVC) = 100,000 : [(70 x 30) – (65 x 30)]
Q = 666.67 shelves
SOLUTION 4.12b.
Q = TFC : (P – UVC)
Q = 180,000 : (1,200 – 300) = 200 physical units
AC = P x Q = 1,200 x 190 = 228,000€
PC = TFC + UVC x Q = 180,000 + (300 x 190) = 237,000€
Profit = 228,000 – 237,000 =  9,000€
Qmax = 200 x 2 = 400
ACmax = 400 x 1,200 = 480,000€
AC_{0} = 1,200 x 0 = 0
AC_{BEP} = 1,200 x 200 = 240,000€
PC_{0} = 180,000 + 300 x 0 = 180,000€
PC_{BEP} = 180,000 + 300 x 200 = 240,000€
AC = 200 x 4,000 = 800,000€
PC = 800,000 + (2 x 4,000) = 808,000€
SOLUTION 4.14b.
Q = 3,000,000 : 60 = 50,000 bicycles
UVC = 300 – 60 = 240€
Profit = P x Q – TFC – UVC x Q
Profit before = (300 x 180,000) – 3,000,000 – (240 x 180,000) = 7,800,000€
Profit after = (350 x 180,000) – 3,000,000 – (240 x 180,000) = 16,800,000€
Increase = 9,000,000€
Labour productivity _{A} = 30,000 : 3,000 = 10 produced units / hour man
Labour productivity _{B} = 40,000 : 2,000 = 20 produced units / hour man
Machinery productivity _{A} = 30,000 : 1,000 = 30 produced units / hour machine
Machinery productivity _{B} = 40,000 : 1,500 = 26.67 produced units / hour machine
SOLUTION 4.16b.
Profit = TR – TC
Profit = [(100,000 x 40) + (200,000 x 50)] – [(150,000 x 20) + (180,000 x 30)]
Profit = 14,000,000 – 8,400,000 = 5,600,000€
P_{2008} = [(100,000 x 40) + (200,000 x 50)] : [(150,000 x 20) + (180,000 x 30)] = 1.67
P_{2009} = [(120,000 x 40) + (180,000 x 50)] : [(130,000 x 20) + (200,000 x 30)] = 1.60
GPI_{20082009} = 1.60 : 1.67 = 0.9581
The global productivity has decreased 4.19%
UVC = TVC : Q
UVC = (200,000 + 100,000) : 10,000 = 30€
TR = P x Q
500,000 = P x 10,000
500,000 : 10,000 = P = 50€
Q = TFC : (P – UVC) = 80,000 : (50 – 30) = 4,000 physical units
TR = 4,000 x 50 = 200,000€
TFC = 900,000 x 0.35 = 315,000
TVC = 900,000 x 0.3 = 270,000
UVC = 270,000 : 27,000 = 10
P = 900,000 : 27,000 = 33.33
Q = 315,000 : (33.33 – 10) = 13,501.93 p.u.
TR = P x Q = 33.33 x 13,501.93 = 450,019.33 m.u.
Profit = TR – TFC – UVC x Q
8,000,000 = 18,000,000 – 5,000,000 – UVC x 29,000
29,000 UVC = 18,000,000 – 5,000,000 – 8,000,000
29,000 UVC = 5,000,000
UVC = 5,000,000 : 29,000 = 172.41
TR = P x Q
18,000,000 = P x 29,000
P = 18,000,000 : 29,000 = 620.69
Q = TFC : (P – UVC) = 5,000,000 : (620.69 – 172.41) = 11,153.74 kitchens
If we produce and sell more than 3,656.69 kitchens we ha a profit, otherwise we have a loss
a.
TFC = 20 UVC = 50
b.
Average cost = TC : Q = (50Q + 20) : Q = 50 + (20 : Q)
c.
Average cost _{95} = (50 x 95 + 20) : 95 = 50.21
d.
Profit = P x Q – TFC – UVC x Q
Profit = 70 x 1,000 – 20 – 50 x 1,000 = 70,000 – 20 – 50,000 = 19,980
e.
Q = TFC : (P – UVC) = 20 : (85 – 50) = 0.57
a.
TFCs = 60; TFCb = 200
b.
UVCs = 10; UVCb = 1
c.
TCs = 60 + 10 x 300 = 3,060
TCb = 200 + 300 = 500
TR = P x Q
430,000 = P x 25,000
P = 430,000 : 25,000 = 17.2
UVC = TVC : Q = 150,000 : 25,000 = 6
Profit = P x Q – TFC – UVC x Q
300,000 = 17.2 Q – 210,000 – 6 Q
300,000 + 210,000 = 17.2 Q – 6 Q
510,000 = 11.2 Q
Q = 510,000 : 11.2 = 45,535.71 p.u.
TC = TFC + UVC x Q
1,820,000 = 1,500,000 + UVC x 10,000
1,820,000 – 1,500,000 = UVC x 10,000
320,000 = UVC x 10,000
320,000 : 10,000 = UVC = 32 €
Production costs = TFC + UVC x Q
Production costs = 1,500,000 + 32 x 11,500 = 1,868,000 €
Acquisition costs = P x Q
Acquisition costs = 165 x 11,500 = 1,897,500 €
The firm would produce the chair because it's cheaper
TR = P x Q
5,000,000 = 290 x Q
5,000,000 : 290 = Q = 17,241.38 physical units
TVC = UVC x Q
1,250,000 = UVC x 17,241.38
1,250,000 : 17,241.38 = UVC = 72.5 €
Q = TFC : (P – UVC)
Q = 2,300,000 : (290 – 72.5) = 10,574.71 physical units
PROFIT = P x Q – TFC – UVC x Q
PROFIT = 290 X 9,500 – 2,300,000 – 72.5 X 9,500 = 233,750 €
The firm would have a loss of 233,750 €
GP = [(P_{1} x Q_{1}) + (P_{2} x Q_{2}) + . . . + (P_{n} x Q_{n})] : [(f_{1} x F_{1}) + (f_{2} x F_{2}) + . . . + (f_{n} x F_{n})]
GP = [(810 x 130) + (980 x 90)] : (75.000 + 57.000) = 1.46