The Doctor manufactures and sells TARDISes. A TARDIS sells for $9.826 each. Variable costs amount to...

The Doctor manufactures and sells TARDISes. A TARDIS sells for $9.826 each. Variable costs amount to $4,000 per TARDIS. Fixed costs amount to $9.825.960 per annum. Any profits are taxed at 30%

Please clearly state your sales price and your fixed costs.

Sales price used $9.826

Fixed cost used $9.825.960

What is the breakeven point in terms of dollar value? (1 mark)

What is the breakeven point in terms of units sold? (1 mark)

How much profit would the Doctor make (before tax) if he sold 5,000 TARDISes? (1 mark)

What would be his margin of safety if he sold 5,000 TARDISes? (1 mark)
How many TARDISes would he have to sell in order to make a profit equal to 5% of sales before tax?

(f)Draw and label the total revenue curve along with the total cost curve and identify the breakeven quantity and revenue on a diagram for your above scenario.

Expert Solution

The Solution is as follows;

ekkarill92 answered 1 year ago

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