Help with variable cost?
A Champagne manufacturer has a Break Even volume of 500,000 bottles per
year. In 2009 they sold 750,000 bottles at €50 per bottle. The costs of running
the vineyard for a year is €10m.
What is the variable cost per bottle?
A Champagne manufacturer has a Break Even volume of 500,000 bottles per
year. In 2009 they sold 750,000 bottles at €50 per bottle. The costs of running
the vineyard for a year is €10m.
What is the variable cost per bottle?
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R = Revenue = 50B
C = Cost = VB+10,000,000
At break even
50*500,000 = 500,000V+10,000,000
15,000,000 = 500,000V
V = 30
€30 per bottle
C = Cost = VB+10,000,000
At break even
50*500,000 = 500,000V+10,000,000
15,000,000 = 500,000V
V = 30
€30 per bottle