A recliner corporation wants to determine how many recliners it must sell in order to earn a profit of $32,000 per month. The price of each recliner is $1,000, and the monthly average variable cost is $400. What is the required monthly sales volume if the corporation's fixed costs are $4,000 per month?
A recliner corporation wants to determine how many recliners it must sell in order to earn a profit of $32,000 per month. The price of each recliner is $1,000, and the monthly average variable cost is $400. What is the required monthly sales volume if the corporation's fixed costs are $4,000 per month?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...
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![Question 15
A recliner corporation wants to determine how many recliners it must sell in order to
earn a profit of $32,000 per month. The price of each recliner is $1,000, and the
monthly average variable cost is $400. What is the required monthly sales volume if
the corporation's fixed costs are $4,000 per month?
54
44
40
36
60
42](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe15591d8-ef35-48e6-9f4d-ee0965089586%2F51e4a861-3996-4951-b1ce-79fbe154eacf%2Fqhem7bi_processed.png&w=3840&q=75)
Transcribed Image Text:Question 15
A recliner corporation wants to determine how many recliners it must sell in order to
earn a profit of $32,000 per month. The price of each recliner is $1,000, and the
monthly average variable cost is $400. What is the required monthly sales volume if
the corporation's fixed costs are $4,000 per month?
54
44
40
36
60
42
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