Question
Ball Bearings, Inc., faces costs of production as follows: Quantity --------------------------0-----------------1-------------------2------------------3----------------------4--------------------5-----------------------6 Total Fixed Cost -------------100--------------100---------------100---------------100--------------------100---------------100--------------------100 Total Variable Cost -------------0----------------50------------------70-----------------90-------------------140---------------200--------------------360 The price of a case of
Ball Bearings, Inc., faces costs of production as follows:
Quantity --------------------------0-----------------1-------------------2------------------3----------------------4--------------------5-----------------------6
Total Fixed Cost -------------100--------------100---------------100---------------100--------------------100---------------100--------------------100
Total Variable Cost -------------0----------------50------------------70-----------------90-------------------140---------------200--------------------360
The price of a case of ball bearings is $50. Seeing that he can't make a profit, the chief executive officer (CEO) decides to shut down operations. What is the firm's profit/loss? Was this a wise decision? Explain.
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Statistics Unlocking The Power Of Data
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock
1st Edition
9780470601877
