A product that has a list price by the company to be 589 while the variable cost of manufacturing is 340. 1. What is the fixed cost per year that the company can afford to breakeven with sales 9000/year? 2. If the fixed cost of the company is actually 750,000 per year, what is the profit at a sales level of 7000 units?

A product that has a list price by the company to be 589 while the variable cost of manufacturing is 340. 1. What is the fixed cost per year that the company can afford to breakeven with sales 9000/year? 2. If the fixed cost of the company is actually 750,000 per year, what is the profit at a sales level of 7000 units?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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