Question: 7. Explain why optimal profits should occur when mar- ginal cost equals marginal revenue. 8. Chambers Company has just gathered estimates for conducting a break-even

7. Explain why optimal profits should occur when mar- ginal cost equals marginal revenue. 8. Chambers Company has just gathered estimates for conducting a break-even analysis for a new product. Variable costs are $7 a unit. The additional plant will cost $48,000. The new product will be charged $18,000 a year for its share of general overhead. Advertising expenditures will be $80,000, and $55.000 will be spent on distribution. If the product sells for $12, what is the breakeven point in units? What is the breakeven point in dollar sales volume

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