20 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR TC If the selling price per unit is $50, and the variable cost per unit is $40: Percent of capacity= FC 40 50 60 70 80 90 100 Units enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)
20 5000 4000 Dollars ($) 3000 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (x,y) e.g. (295,7650) (b) What are the fixed costs? $ TR TC If the selling price per unit is $50, and the variable cost per unit is $40: Percent of capacity= FC 40 50 60 70 80 90 100 Units enter the answer in the form (c) If the maximum production capacity of the commodity is 110, express the break-even units as a percent of capacity? % (round to two decimal places if necessary)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The figure below shows graphs of the fixed cost function, total cost function
and the total revenue function for a certain commodity.
20
8000
7000
6000
5000
4000
Dollars ($)
3000
2000
1000
-10
-1000+
10 20 30
40
Units
(a) What is the break-even point?
(x,y) e.g. (295,7650)
(b) What are the fixed costs? $
TR
Percent of capacity=
50 60
TC
If the selling price per unit is $50, and the variable cost per unit is $40:
FC
70 80 90 100
enter the answer in the form
(c) If the maximum production capacity of the commodity is 110, express the
break-even units as a percent of capacity?
% (round to two decimal places if necessary)
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