# How to calculate the usable threshold?

## How to calculate the usable threshold?

= Utilization threshold in pieces (in terms of quantity) Fixed costs (GK) / contribution margin per piece = 80,000 / 2 = 40,000 pieces must be sold so that all GK are covered, but with 40,000 you have no profit, but also no loss.

## How do you calculate the profit function?

Profit function: y = 7x – (3x + 5000), ie y=4x-5000. Profit function = revenue function minus cost function (“income minus expenses”).

## How do you calculate the maximum revenue?

The revenue is calculated as the quantity times the price, so the revenue function is E(x) = x*p(x) = x*(-0.25*x+4) = In order to determine the production volume at the maximum revenue, one can now use the and determine the nature of the zeros of the first derivative of the revenue function.

## How do you calculate a total cost function?

If 1000 pieces have a total variable cost of \$7000, then the per-piece value must be \$7000 ÷ 1000 = \$7. The complete total cost function is therefore: K = 5000 € + 7 € · x.

## How do you calculate the cost function?

The calculation is straightforward: the cost function K(x) is divided by X. The marginal cost, on the other hand, indicates how expensive it is to produce the last unit of the good produced. This is important because average costs typically do not remain constant as output increases.

## What is a total cost function?

1. Term/characterization: The total cost function indicates all costs incurred when a quantity x of a good is produced at given factor prices q using the technology described by the production function x = f(r): K = F(x). 2.

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