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Total revenue and costs (5 in thousands) 50 200 200 800 900 1000 1200 1400 Quantity of pictures 1800 1800 2.000 Figure 11-6 Suppose you
Total revenue and costs (5 in thousands) 50 200 200 800 900 1000 1200 1400 Quantity of pictures 1800 1800 2.000 Figure 11-6 Suppose you are the owner of a picture frame store. Let's assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). Figure 11-6 above shows that by selling 200 pictures, your picture frame store will have no fixed costs. Total revenue and costs (S in thousands) 200 400 600 1600 DO 100 200 1400 Quantity of pictures Figure 11-6 Suppose you are the owner of a picture frame store. Let's assume that the average price customers are willing to pay for each picture frame is $120. Also, suppose your fixed costs (FC) total $32,000 (real estate taxes, interest on a bank loan, etc.) and unit variable cost (UVC) for a picture frame is $40 (labor, glass, frame, and matting). Figure 11-6 above shows that by selling 200 pictures, your picture frame store will have no fixed costs. o carn a profit incur a loss. break even tions have no variable costs
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