Zhang Wei's firm has the capacity to produce a maximum of 6000 items per annum. The fixed costs are $385,500 per annum, variable costs are $5 per item, and he sells each item for $80.

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

b. If the firm produced and sold 5100 items in a year, what was the profit made or loss incurred?

c. What is the maximum profit per year that he can expect from his firm?

AppendixLO1