Question
8) Lets say you make and sell something called Product X. Your fixed costs for a month are $10,000. Every time I made a unit
8) Lets say you make and sell something called Product X. Your fixed costs for a month are $10,000. Every time I made a unit of X it costs me $4. Every time I sell it, I sell it for $14.
a)If you make/sell ZERO units, what is your total cost?
b)If you make 1 unit, what is your total cost?
c) If you make 1 unit, what is your per-unit cost?
d) If you make 5 units, what is your total cost?
e) If you make 5 units, what is your per-unit cost?
f) If you make 10 units, what is your total cost?
g) If you make 10 units, what is your per-unit cost?
h) Looking above, what can you say about the pattern that is, what happens to the total cost of X as you increase from 1 to 5 to 10 units?
i) Looking above, what can you say about the pattern that is, what happens to the cost PER UNIT OF X as you increase from 1 to 5 to 10 units?
j) How much extra profit do you make every time you make/sell a unit of X?
OK, TRICKIER QUESTIONS (psst. This is the next section)
k) How many units of X must you sell to cover all of your fixed costs and BREAK EVEN?
l) Whats your profit if you make/sell 700 units of X?
m) Whats your profit if you make/sell 1.000 units of X?
n) Whats your profit if you make/sell 1,500 units of X?
o) How many X must you make/sell in order to make a profit of $6,000.
Please help!! Will give like
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