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An ice cream producer has fixed costs of RM70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub
An ice cream producer has fixed costs of RM70,000 per month, and it can produce up to 15,000 ice cream tubs per month. Each tub costs RM10 in the market while the producer faced variable costs of RM3 per tub.
(a)Find the economic breakeven level of ice cream production.
(b)Calculate the ice cream producer'smonthly profits at full capacity.
(c)If the price of ice cream tubs down to RM7 per tub, what would happen to the monthly profit of ice cream in the market?
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