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The management of a firm wants to introduce a new product. The product will sell tor $ 5 a unit and can be produced by

The management of a firm wants to introduce a new product. The product will sell tor $5 a unit and can be produced by either of two scales of operation. In the first, total costs are
TC=$2,500+$3.2Q.
2
In the second scale of operation, total costs are
TC=$4,100+$2.7Q
a. What is the break-even level of output for each scale of operation? Round your answers to the nearest whole number.
b. What will be the firm's profits for each scale of operation if sales reach 3,200 units? Round your answers to the nearest dollar.
Break even level scale 1:
Break even level scale 2:
Profits scale 1:
Profits scale 2:
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