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A small manufacturing operations can produce up to 250 units per week of a product that it sells for $20 per unit. The variable costs
A small manufacturing operations can produce up to 250 units per week of a product that it sells for $20 per unit. The variable costs per unit is $12 and the fixed costs per week are $1200.
A. How many units must the firm sell per week to break even? (150 units)
B. Determine the firms weekly profit or loss if it sells:
- 120 units per week ($240 loss)
- 250 units per week ($800 profit)
C. At what level of sales will the net income be $400 per week? (200 units)
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