A machine manufacturer sells each machine for $8000. The fixed costs are $280,455 per annum, variable costs are $1800 per machine, and the production capacity is 60 machines in a year.

a. Calculate the break-even volume, break-even revenue, and break-even as a percent of capacity per annum.

b. What is the profit or loss made if 40 machines are produced and sold in a year?

AppendixLO1