Measer Enterprises produces energy- efficient light bulbs and operates in a highly competitive market in which the bulbs are sold for $ 4.50 each. Because of the nature of the production technology, the firm can produce only between 10,000 and 13,000 units per month, in fixed increments of 1,000 units. Measer has the following cost structure:

Required:
At what output level should the firmoperate?

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Production and Cost Data Units Produced 10,000 13,000 $37,000 $40,800 $44.600 $48.400 9,000 8.200 6,000 567,000 $71,600 11,000 12,000 Factory cost, variable Factory cost, fixed Selling cost, variable Administration, fixed 9,000 6,000 6,000 9,000 6,600 6,000 9,000 7,400 6,000 Total $58,000 $62400 $ Average unit cost $5.80 $5.67 $5.58 5.51