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A firm has the capacity to produce 760,011 units of a product each year. At present, it is operating at 57 percent of capacity. The
A firm has the capacity to produce 760,011 units of a product each year. At present, it is operating at 57 percent of capacity. The firm's annual revenue is $935,311. Annual fixed costs are $176,684 and the variable costs are $.42 cents per unit. The following equations will be useful. Profit = Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Costs = Fixed Cost + (cost each * quantity) At the break even point, Profit = 0 What is the price for each unit?
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