A firm has the capacity to produce 1057330 units of a


A firm has the capacity to produce 1,057,330 units of a product each year. At present, it is operating at 38 percent of capacity. The firm's annual revenue is $1,165,960. Annual fixed costs are $479,641 and the variable costs are $.73 cents per unit. The following equations will be useful. Profit = Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the firm's annual profit or loss?

Solution Preview :

Prepared by a verified Expert
Basic Statistics: A firm has the capacity to produce 1057330 units of a
Reference No:- TGS02749103

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)