16. Break-even 1 Total: /18 marks
1.
In each of the following scenarios state whether the business has made a profit, a loss or
achieved break-even.
8 marks
to the document
Business
Revenue
TR = £350000
Profit/loss/BE Supporting calculation
Costs
TC = £270000
A
B
TC = £560000
£10 price
50000 units sold
С
TR = {180000
FC = £100000
VC = £80000
D
TR = {925000
TC = £845000
2. Maggie makes metal sculptures for hotel gardens. Each one sells for £4250. Other
information includes
Fixed costs £60000
Variable cost per sculpture £4000
Quantity sold 500
2 marks
а.
What is her selling price - variable cost per unit?

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Prepare beneish corporation's income statement and statement of stockholders' equity for year-end december 31, and its balance sheet as of december 31. there were no stock issuances or repurchases during the year. (do not use negative signs with your answers unless otherwise noted.)

The upper-level managers of synergy technology are meeting for the week to look at the long-term company goals and overall direction of the organization. the ceo has expressed her concern over the economy and has told her managers to look closely at the environment outside the organization before making decisions and to be future oriented. in this meeting, top managers of synergy are