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Imagination Ltd. makes engines for different cars, which it sells to car manufacturers for 100 each. Managers of Imagination Ltd. estimate that next year they
Imagination Ltd. makes engines for different cars, which it sells to car manufacturers for 100 each. Managers of Imagination Ltd. estimate that next year they will make and sell 2,000 engines. The cost structure is as follows: 60 per engine and 200,000 per year. Considering this information, which of the following statements is true? Select one: a. If Imagination Ltd. finally makes and sells 5,000 engines, total revenue will be equal to total costs. b. If Imagination Ltd. makes and sells the estimated 2,000 engines, the profit will be 120,000. c. If Imagination Ltd. makes and sells 6,000 engines, the loss will be 40,000. d. None of the answers is true
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