During an economic slowdown, an automobile plant lost $12,000,000 on the production and sale of 9000 cars.

Question:

During an economic slowdown, an automobile plant lost $12,000,000 on the production and sale of 9000 cars. Total revenue for the year was $270,000,000. If the break-even volume for the plant is 10,000 cars per year, calculate:
a. The plant’s total fixed costs for a year.
b. The net income if unit sales for the year had been equal to the five-year average of 12,000.