Question

In: Operations Management

1. A company has fixed cost of $45,000, variable cost per unit of $11, and sells...

1. A company has fixed cost of $45,000, variable cost per unit of $11, and sells its product at $18 each.

a) What quantity must the firm sell in order to break-even? Explain how you reached this conclusion.

b) What is the firm's total revenue at the break-even level of output? Show your calculation.

c) What is the firm's total variable cost at the break-even level of output?

d) What quantity must the firm sell in order to make a profit of $62,000? Explain how you reached this conclusion.

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Expert Solution

keosha answered 2 years ago
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