The annual fixed costs for a given factory are $150,000, the variable cost is $30 per unit and the selling price is $50 per unit. If the production capacity for this factory is 10,000 units per year, how many units should be made to have an annual profit of $25,000? *

The annual fixed costs for a given factory are $150,000, the variable cost is $30 per unit and the selling price is $50 per unit. If the production capacity for this factory is 10,000 units per year, how many units should be made to have an annual profit of $25,000? *

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The annual fixed costs for a given
factory are $150,000, the variable cost
is $30 per unit and the selling price is
$50 per unit. If the production capacity
for this factory is 10,000 units per year,
how many units should be made to have
an annual profit of $25,000? *
7,500
10,000
8,750
7,850
5,700
None

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