Can someone please briefly interpret a and b:
Problem-solving: Calculate the break-even point (Q) for a firm whose: (a) total fixed cost (TFC) = $100000 product price per unit of output
(P) = $10.00 and average variable cost (AVC) = $7.50. (b) TFC = $600000 P = $15000 and AVC = $12000.
a) Break Even Point %u2013 P x Q= F + (VxQ)
$10 * Q= $100000 + ($7.50 * Q)
($10- $7.50) * Q= $100000
2.5 * Q= $100000
b) Break Even Point %u2013 P x Q= F + (VxQ)
$15000 * Q = $600000 + ($12000 * Q)
($15000 %u2013$12000) * Q= $600000
3000 * Q= $600000
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