C or prouuctiol 13 INCIeaseu.15.A certain firm has the capacity to produce 840,000 units of product per year.At present, it is operating at 60% of capacity. The firm's annual income is$504,000. Annual fixed costs are $212,000, and the variable costs are equal to$0.392unit of product.What is the firm's annual profit or loss? Answer: $94,432 profitb.perа.At what volume of sales does the firm break even?What will be the profit or loss at 75%, 85%, and 90% of capacity on thebasis of constant income per unit and constant variable cost per unit?bas c.

Here, Present capacity is equal to Total revenue Profit = total revenue- total cost All parts…

Answered: At present, it is op- $504,000. Annual…

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At present, it is op- $504,000. Annual fi- $0.392 per unit of pr а. What is the fir b. At what volun

Survey Of Economics

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ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

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Question

C or prouuctiol 13 INCIeaseu.
15.
A certain firm has the capacity to produce 840,000 units of product per year.
At present, it is operating at 60% of capacity. The firm's annual income is
$504,000. Annual fixed costs are $212,000, and the variable costs are equal to
$0.392
unit of product.
What is the firm's annual profit or loss? Answer: $94,432 profit
b.
per
а.
At what volume of sales does the firm break even?
What will be the profit or loss at 75%, 85%, and 90% of capacity on the
basis of constant income per unit and constant variable cost per unit?
bas c.

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