4. A manufacturing company leases for $100,000 per yr a building that houses its manufacturing facilities. In addition the machinery in the building is being paid for installments of $20,000 per year. Each unit of product produced costs $15 in labor and $10 in materials and can be sold for $50. a) How many units per year must be sold for the company to break even? b) If the selling price is lowered to $45 per unit how many units must be sold each year for the company to earn a profit of S80,000 per year?

4. A manufacturing company leases for $100,000 per yr a building that houses its manufacturing facilities. In addition the machinery in the building is being paid for installments of $20,000 per year. Each unit of product produced costs $15 in labor and $10 in materials and can be sold for $50. a) How many units per year must be sold for the company to break even? b) If the selling price is lowered to $45 per unit how many units must be sold each year for the company to earn a profit of S80,000 per year?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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