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A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (FC) is $70,000 per month, and the
A company produces an electronic timing switch that is used in consumer and commercial products. The fixed cost (FC) is $70,000 per month, and the variable cost (vc) is $80 per unit. The selling price per unit is p = $160 0.04(D). For this situation,
(a) Determine the optimal volume for this product and confirm that a profit occurs (instead of a loss) at this demand.
(b) find the volumes at which breakeven occurs; that is, what is the range of profitable demand?
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