Question: A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit. The firm
A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable costs are $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation? What is the profits (or loss) on a demand of 200 units per year?
a. $40,000
b. $21,000
c. $53,000
d. $100
e. -S15,000
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