A company has fixed costs of $300,000 and produces one product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units.

How much profit will they make at the present level of operation?

a. 150,000 Loss

b. 300,000 Profit

c. 300,000 Loss

d. 150,000 Profit

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ABC Ltd. makes a television table that sells for $60 per unit. It has variable costs of $20 per unit and incurs fixed costs of $110,000 per period.

If ABC Ltd. Sells 150 tables, what would be the profit?

a. Breakeven point

b. 104,000 Profit

c. 110,000 profit

d. 104,000 Loss