The Student Room Group

Urgent Business help please!!

I am completely baffled by this question. How am I supposed to calculate the selling price with this data? Please help if you can:

The following data applies to a business:
• break-even output = 500 units
• fixed costs = £30 000
• variable cost per unit = £30.
The business is currently operating at its break-even output. Calculate its selling price. Show your workings.
whats the profit margin?
Original post by the_icy_goldfish
whats the profit margin?

Do I need that? If so, which type (operating, gross...)?
Original post by bassplayer347
Do I need that? If so, which type (operating, gross...)?

gross, also yes. once you have that an costs, its easy from there.
Original post by the_icy_goldfish
gross, also yes. once you have that an costs, its easy from there.

Well I'm assuming if they're operating at break-even output, that means their revenue is £15,000? What is the cost of goods sold then... £15,000? Is their gross profit margin just 0%?
wait is there any other part to the question? like at all? cause it could be 0% margin but a business wouldnt do that, the costs shouldnt be the same as the selling price
Original post by the_icy_goldfish
wait is there any other part to the question? like at all? cause it could be 0% margin but a business wouldnt do that, the costs shouldnt be the same as the selling price

that's why i'm so confused... that's all the information we've been given.

i might just give up honestly, it's only 4 marks...

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you