Variables
R_A <- 38
Fc_A <- 2057000
Vc_A <- 27
R_B <- 38
Vc_B <- 32
Fc_B<- 855000
Machine A
breakeven <- function(R_A, Fc_A, Vc_A){
round(Fc_A /(R_A-Vc_A), 0)
}
breakeven(R_A, Fc_A, Vc_A)
## [1] 187000
breakeven <- function(R_B, Fc_B, Vc_B){
round(Fc_B /(R_B-Vc_B), 0)
}
breakeven(R_B, Fc_B, Vc_B)
## [1] 142500
units <- 228000
revenue_A <- units * R_A
revenue_A
## [1] 8664000
totalcost_A <- Fc_A + units * Vc_A
totalcost_A
## [1] 8213000
Contribution Profit
revenue_A - totalcost_A
## [1] 451000
Machine B
totalcost_B <- Fc_B + units * Vc_B
totalcost_B
## [1] 8151000
Contribution Profit
revenue_A - totalcost_B
## [1] 513000