Costs, scale of production and break-even analysis — practice question

Calculate the break-even output level for the house cleaning service from the information in Appendix 1.

Calculate the weekly profit of the house cleaning service from the information in Appendix 1.

Consider why each of the following pieces of financial information matters to a bank manager when choosing whether to grant Ghaziz and Jasmin a loan to launch the new service. Which do you think is the most important information for the bank manager? Justify your answer. Break-even level of output. Profitability of the business. Liquidity of the business. Conclusion.