00:01
Hello students, we are given a question here, what is the estimated profit at a production rate of 20 percentage above break -even, okay? so we are given here, the fixed cost is $5 ,000 per year, production cost per year is $200 and the revenue per unit is $250, okay? so here, first of all, we are supposed to know that the calculation for estimated profit at a production rate of 20 % above birth -point goes back.
00:30
Like we need to calculate first of all the break even point break even point okay students so we can just write here that it should be equal to fixed cost and then divided by contribution per unit contribution per unit okay so basically fixed cost is five like students then divided by contribution per unit it should be equal to the revenue per unit minus production cost per unit it means 250 minus 200 250 dollar minus 200 dollar so basically 5 lakh dollar students then divided by 50 dollar what we can state zeros will be cancelled by zeros it mean 50 ,000 divided by 5 what we will get it will be equal to 10 ,000 sorry here it should be in the units, so basically 10 ,000 units.
01:42
Okay, students, now here we are supposed to know that what we need to do, we need to go for the estimated production, estimated production.
01:56
Okay, students, estimated production for new product.
02:03
So basically it should be equal to 10 ,000 plus 10 ,000 times it's a 20 % as we are given so basically 10 ,000 plus here it should be 2000 so what we will get it will be equal to the 12 ,000 dollars...