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? *
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc4e78b0-bccc-46e3-8327-545d6fa873e5%2Fd47dd303-843a-4d67-9c60-a865a92cc8a2%2F8pp58jn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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