Question

Information about a pickling company is given below. (Pickling: A plot to be built is the name given to the stripping of vegetative or soft soil on a land to be filled, and the soil on the ore in open mining enterprises.) Variable Expenses Electricity Expenses: 100 TL/m3 Diesel and Oil Expenses: 500 TL/m3 Tire and Spare Parts Expenses: 400 TL/m3 Explosive Expenses: 300 TL/m3 Other Variable Expenses: 200 TL/m3 Fixed costs Depreciation, insurance and interest expenses: 1.5 billion TL/year Compulsory labour and personnel expenses: 0.5 billion TL/year Other Fixed Expenses: 0.5 billion TL/year Revenue: 5000 TL/m3 Production Capacity is 2000000 m3 /year a) Find the breakeven point as the production amount? b) Find the amount of pickling that the company needs to make in order to make a profit of 3 billion TL/year.

Answer 1