Break Even

A plant hire company purchases a mobile crane for £120,000. It plans to charge £190 a day for hiring out the crane. For each day on which it is hired out the company expects to incur variable costs of £40.

(a)  Work out how many days the company needs to hire out the crane in order to break even.

Don't use plagiarized sources. Get Your Custom Essay on
Break Even
Just from $13/Page
Order Essay

(b)  If the variable costs are actually £55 and the hire charge has to be reduced to £180 per day, what is the new breakeven point?


and taste our undisputed quality.