A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.

A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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