A company patented a new device. If commercializes it, the variable costs are about $7 per unit product, and fixed costs are about $56,000 per year.
1. If the selling price is $25, how many units must be sold to break even?
2. What’s the profit for Q=4000 units?
3. How many devices must be sold to realize a profit of $20,000?
4. What should the price to make a profit of $20,000 at quantity level Q=4000.