00:01
So here the question was asked to find the break even unit volume.
00:04
So to find break even volume or the break even means the profit is zero.
00:09
So break even point means profit equal to zero we can tell or when the profit is zero we can tell that the revenue is equal to the cost.
00:25
Now if you write profit equal to zero then we know that profit is nothing but profit is equal to revenue minus cost so if profit is equal to zero then revenue equal to cost now we have to find the revenue function and cost function so that we can just find the value of this break -even point or the break -even volume so revenue means revenue is nothing but unit selling price into number of units sold so here in this question the unit selling price is given as yeah it was mentioned here that it sells high quality industrial values for 200 each now we can take that as the unit selling price is 200 and the number of units sold i'm just taking as x so let number of units produced and sold so number of units produced and sold is taking as x then revenue will be equal to revenue will be equal to 200 into tax because 200 was the unit selling price.
01:54
Now we got the revenue function.
01:56
Next thing we have to find the cost function.
02:00
So cost is nothing but there will be two types of cost that is fixed cost plus variable cost.
02:06
So this is fixed cost plus variable cost.
02:11
This variable cost will be equal to the variable unit cost into number of units produced.
02:17
And this fixed cost here it was given as it was mentioned here this has fixed has fixed overhead of 250 ,000 for its plans and salaries of 350 ,000 so total fixed cost will be equal to 250 ,000 plus 350 ,000 this is the fixed cost plus the way for the variable cost it was given that variable production cost are one so, 140 is the unit variable cost...