A firm has the capacity to produce 1,251,940 units of a product each year. At present, it is operating at 90 percent of capacity. The firm's annual revenue is $1,398,620. Annual fixed costs are $502,594 and the variable costs are $.46 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?