Profits = revenue - fixed costs - variable costs Revenue = unit price * units sold Variable costs = unit cost * quantity produced Units sold (you need to figure out for yourself) Unit price $50 Unit cost $25 Fixed cost $550,000 Quantity produced 55,000 Uncertain Demand Case Probability Quantity Recession 0.2 35,000 Base-case 0.4 45,000 Lucky 0.3 55,000 Boom 0.1 65,000