Ma Bryan sells homemade preserves. The profitrelation for the following estimates at a quantitythat is 10% above breakeven is closest to:Fixed cost = $500,000 per yearCost per 100 units = $200Revenue per 100 units = $25 (a) Profit = 200(11,000) − 250(11,000) − 500,000 (b) Profit = 250(11,000) − 500,000 − 200(11,000) (c) Profit = 250(11,000) − 200(11,000) + 500,000 (d) Profit = 250(10,000) − 200(10,000) − 500,000
Ma Bryan sells homemade preserves. The profitrelation for the following estimates at a quantitythat is 10% above breakeven is closest to:Fixed cost = $500,000 per yearCost per 100 units = $200Revenue per 100 units = $25 (a) Profit = 200(11,000) − 250(11,000) − 500,000 (b) Profit = 250(11,000) − 500,000 − 200(11,000) (c) Profit = 250(11,000) − 200(11,000) + 500,000 (d) Profit = 250(10,000) − 200(10,000) − 500,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ma Bryan sells homemade preserves. The profit
relation for the following estimates at a quantity
that is 10% above breakeven is closest to:
Fixed cost = $500,000 per year
Cost per 100 units = $200
Revenue per 100 units = $25 (a) Profit = 200(11,000) − 250(11,000) − 500,000
(b) Profit = 250(11,000) − 500,000 − 200(11,000)
(c) Profit = 250(11,000) − 200(11,000) + 500,000
(d) Profit = 250(10,000) − 200(10,000) − 500,000
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