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2. A firm has the capacity to produce 924,230 units of a product each year. At present, it is operating at 83 percent of capacity. The firm's annual revenue is $1,114,913. Annual fixed costs are $521,290 and the variable costs are $.70 cents per unit. The following equations will be useful. Profit Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the price for each unit? Your Answer:

2. A firm has the capacity to produce 924,230 units of a product each year. At present, it is operating at 83 percent of capacity. The firm's annual revenue is $1,114,913. Annual fixed costs are $521,290 and the variable costs are $.70 cents per unit. The following equations will be useful. Profit Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the price for each unit? Your Answer:

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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2. A firm has the capacity to produce 924,230 units of a product each year. At present, it is operating at 83 percent of capacity. The firm's annual revenue is $1,114,913. Annual fixed costs are $521,290 and the variable costs are $.70 cents per unit. The following equations will be useful. Profit Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the price for each unit? Your Answer:
Transcribed Image Text:2. A firm has the capacity to produce 924,230 units of a product each year. At present, it is operating at 83 percent of capacity. The firm's annual revenue is $1,114,913. Annual fixed costs are $521,290 and the variable costs are $.70 cents per unit. The following equations will be useful. Profit Revenue - Costs Revenue = Price each * quantity Costs = Fixed Cost + Variable Costs Variable Cost = Variable Cost per unit * number of units At the break even point, Profit = 0 What is the price for each unit? Your Answer:
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