The following information is supplied by Fleming Ltd - Leaving Cert Business - Question 9 - 2022

To calculate the Total Costs (TC), we need to sum the Fixed Costs and the Variable Costs.

First, calculate the variable costs:

$ext{Variable Costs} = ext{Forecasted Output} imes ext{Variable Cost per unit}$

Substituting in the values:

$ext{Variable Costs} = 75,000 imes 2.50 = €187,500$

Now, adding the Fixed Costs:

$TC = ext{Fixed Costs} + ext{Variable Costs} = 55,000 + 187,500 = €242,500$

Profit can be calculated using the following formula:

$ext{Profit} = ext{Total Revenue} - ext{Total Costs}$

Using the calculated values:

$ext{Profit} = 450,000 - 242,500 = €207,500$

The Breakeven Point (BEP) can be found using the formula:

ext{BEP} = rac{ ext{Fixed Costs}}{ ext{Selling Price} - ext{Variable Cost per unit}}

Substituting the values:

ext{BEP} = rac{55,000}{6 - 2.50} = rac{55,000}{3.50} = 15,714.29 ext{ units}

Rounding to the nearest whole number, the BEP is approximately 15,714 units.