6. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $5,000. The price-demand relationship for this product is P = -0.2D + 220, where P is the unit sales price of the product and D is the annual demand. Find the breakeven quantity. Total cost = Fixed cost + Variable cost Revenue = Demand x Price Profit = Revenue - Total cost

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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6. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $5,000.
The price-demand relationship for this product is P = -0.2D + 220, where P is the unit sales price of the product
and D is the annual demand. Find the breakeven quantity.
Total cost = Fixed cost + Variable cost
Revenue = Demand x Price
Profit = Revenue - Total cost
Transcribed Image Text:6. A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $5,000. The price-demand relationship for this product is P = -0.2D + 220, where P is the unit sales price of the product and D is the annual demand. Find the breakeven quantity. Total cost = Fixed cost + Variable cost Revenue = Demand x Price Profit = Revenue - Total cost
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