The manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of $20,000 per month.
In addition to this leasing cost, a production cost of $10 would be incurred for each unit of the product produced. Each unit sold would generate $20 in revenue.
Use the table below to fill out the break even point.
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Data |
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|
Results |
| Unit Revenue |
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|
Total Revenue |
$ |
| Fixed Cost |
|
|
Total Fixed Cost |
$ |
| Marginal Cost |
|
|
Total Variable Cost |
$ |
| Sales Forecast |
|
|
Profit (Loss) |
$ |
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|
|
|
|
| Production Quantity |
|
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