00:01
Hello, everyone and welcome.
00:02
So there's a few different umbrellas here that we have to divvy up our information into.
00:08
We've got revenue, we've got cost, and we've got profit.
00:13
So starting with the revenue, that's how much the money the company makes.
00:19
And so the product is sold for $5 per unit.
00:24
So the total amount of money that they make is 5x, where x is the number of units.
00:30
The company's fixed costs, moving on to costs, are $30 ,000 plus, and it also says that the average variable cost is $3 per unit, so plus 3x.
00:48
And let me read this a little bit neater, 3x...