A company sells a product for $34 each. The variable costs are $16 per unit and fixed costs are $14,562 per month. a) Find the revenue function. TR = b) Find the cost function. TC = c) Calculate the number of units needed to be sold per month to break-even.
A company sells a product for $34 each. The variable costs are $16 per unit and fixed costs are $14,562 per month. a) Find the revenue function. TR = b) Find the cost function. TC = c) Calculate the number of units needed to be sold per month to break-even.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 13SQ
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Transcribed Image Text:A company sells a product for $34 each. The variable costs are $16 per unit and fixed costs are
$14,562 per month.
a) Find the revenue function. TR =
b) Find the cost function.
TC =
c) Calculate the number of units needed to be sold per month to break-even.
units
d) Calculate the revenue at the break-even (round off to the nearest cent). $
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