Please see attachment and show all work so that i can try and get an understanding on how to work the problem out on my own. Thanks
Please see attachment and show all work so that i can try and get an understanding on how to work the problem out on my own.
Greentown Industries sells its transport services at a range of prices to five
different customer groups. The company has fixed costs of £150,000 per year.
The average variable costs for each transport service, irrespective of customer
group, is £7. The Table below shows the prices charged to each customer group
and the quantity of transport services that are currently sold at that price.
If the average selling price is £21, calculate the breakeven point in
quantity and money terms and ignoring any market demand or capacity
limitations, calculate the optimum selling price for Greentown Industries
and identify which customer group is most profitable.