Scribd
Upload
29 views1 page

ICA 2 2025 Corrected

The document outlines a scenario involving a company that manufactures and sells a product, detailing its fixed and variable costs, as well as the selling price. It poses several questions related to calculating total cost and revenue functions, breakeven points, and profit for a specific production quantity. The assignment is structured to assess understanding of cost analysis and graphical representation in a business context.

Uploaded by

patiencebogopa198
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
29 views1 page

ICA 2 2025 Corrected

The document outlines a scenario involving a company that manufactures and sells a product, detailing its fixed and variable costs, as well as the selling price. It poses several questions related to calculating total cost and revenue functions, breakeven points, and profit for a specific production quantity. The assignment is structured to assess understanding of cost analysis and graphical representation in a business context.

Uploaded by

patiencebogopa198
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

ICA 2

BS1

20 MARKS.

A company manufactures and sells a product. The fixed costs of production are 5,000 per month,
and the variable cost per unit is 20. The product is sold at a price of $50 per unit. Based on the
above scenario, answer the following questions:

(a) Find the total cost function/equation [3 marks]


(b) Find the total revenue function/equation [3 marks]
(c) Based on your answers to questions (a) and (b), calculate the breakeven point in terms of the
number of units produced. [4 marks]
(d) Graph your Total Cost and Total Revenue functions. [6 marks]
(e) What will be the total cost of producing 80? [2 marks]
(f) How much profit will the company make by producing 80? [2 marks]

You might also like