The manufacturing company produces 1 type of product. In the monitored period, a total of 35,000
units were produced (and sold) and the total cost of producing this amount amounted to CZK
13,328,000. In the following year, the production volume increased by 10% and the total costs rose
to CZK 14,460,800.

1. Determine the cost function.

2. Determine the production volume that will ensure the break-even point is reached if the price is
CZK 900/piece.






















The company produces keyboards for computers and only in one variant. From our own records, it was
found that the variable costs related to the production of one keyboard amount to CZK 1,000. Fixed
costs determined from accounting are set at CZK 190,000 per month. The company sells one keyboard
for CZK 2,990. In the given period (per year), the company produced 5,000 keyboards and sold all of
this production.

1.      Calculate the economic result of the business.

2.      Determine at what production volume the company will break even.

3.      Determine the volume of production that will ensure a profit of 5,500,000 per year.






















The company manufactures and sells pitchforks. Annually, the company produces 40,000 forks with a
total variable cost of CZK 2,320,000. Fixed production costs amount to CZK 1,455,000/year and the
price of forks is calculated at CZK 120/piece.


1.      Determine the cost function.

2.      Calculate the production value at which the break-even point is reached.

3.      Calculate the economic result for the production of 40,000 forks.