To determine the profit or loss at 300 units of production, let's follow these steps: Calculate the total fixed costs: Rent: $3,000 Utilities: $1,100 Insurance: $1,200 (quarterly, so $1,200/3 = $400 per month) Property Tax: $6,000 (annually, so $6,000/12 = $500 per month) Total Fixed Costs = $3,000 + $1,100 + $400 + $500 = $5,000 per month Calculate the total variable cost at 300 units of production: Steel: $9.00 per shelf Forming: $0.25 per shelf Labor: $0.75 per shelf Total Variable Cost per Unit = $9.00 + $0.25 + $0.75 = $10.00 per unit Total Variable Cost at 300 units = 300 units * $10.00 = $3,000 Calculate total cost (fixed cost + variable cost) at 300 units: Total Cost at 300 units = Total Fixed Costs + Total Variable Cost at 300 units = $5,000 + $3,000 = $8,000 Calculate total revenue at 300 units: Total Revenue at 300 units = 300 units * $20.00 = $6,000 Calculate profit or loss at 300 units: Profit or Loss at 300 units = Total Revenue at 300 units - Total Cost at 300 units = $6,000 - $8,000 = -$2,000 Therefore, the Steel Shelf Company incurs a loss of $2,000