If a firm can sell all it produces for $10 per unit and the same firm has fixed costs of $174 and its variable costs increase by $4 for every unit produced, find the break even quantity. Round all calculations to 2 decimals
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Suppose that a company has fixed costs of $300 and variable costs of $0.3x + $1440 per unit, where x is the number of units produced. Suppose further that the selling price of its product is $1600 per unit. In each part, the number of units produced/sold must be a whole number and rounded to the nearest one. (a) Find the break-even points. The larger number of units at which break-even occurs with corresponding revenue is dollars. The smaller number of units at which break-even occurs is dollars, with corresponding revenue. (b) Find the maximum revenue. (c) What price will maximize profit? (Recall that profit is the difference between revenue and cost).
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