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ENGR 133, Lab -03
Authored by: Jim Long
Created on: 6/22/2021
Exercise #1 ... Problem 5.1
Problem presentation
We are asked construct a breakeven plot for producing and selling a chemical product. to We are given values
for fixed cost (FC), variable cost (VC), quantity (Q), and unit selling price (P). We want to know the breakeven
point, the range profitable production, and the quantity product that produces maximum profit. of of
Initialize variables
Perform calculations
Evaluate results
Display results
plot(Q*1e-6,TC,Q*1e-6,TR,' '-- )
title('Product Economic Model')
xlabel('Quantity Produced/Sold, millions of gallons')
ylabel('Total Revenue/Cost, $M')
legend('Total Cost' 'Total Revenue', ,'location','northwest')
grid on
TC = FC + Q*VC; % returns Total Cost (TC) per year in $M
TR = Q*P; % returns Total Revenue (TR) per year in $M
TP = TR - TC; % returns Profit per year in $M
clc,clear,close all
FC = 3e6; % Fixed Cost in dollars per year
VC = 0.025; % Variable Cost in dollars per gallon produced
P = 0.055; % Selling Price in cents per gallon sold
Q = [0:200]*1e+6; % Quantity produced/sold in millions of gallons per year
idx=find(TP>0); % finding all possible indexes where TP is positive
minQ_idx=min(idx); % finding first index where TP is positive
BEP = Q(minQ_idx); % return Breakeven Point in millions of gallons per year
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