A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200.
a. How many units must the business sell per week to break even?
b. Determine the firm’s weekly profit or loss if it sells:
(i) 120 units per week
(ii) 250 units per week
c. At what level of sales will the net income be $400 per week?