An industrial operation is working with 70 % capacity. The annual variable production cost is 140...

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An industrial operation is working with 70 % capacity. The annual variable production cost is 140 000 $. Total annual fixed cost is 100 000 $. If the unit selling price of the product is 20 $ and with this capacity total annual gain is 280 000 $ what will be the production rate at "break-even point. If the plant is operated with 100% capacity what will be the gross profit and net profit. For this example tax rate can be taken as 37% over gross profit. An industrial operation is working with 70 % capacity. The annual variable production cost is 140 000 $. Total annual fixed cost is 100 000 $. If the unit selling price of the product is 20 $ and with this capacity total annual gain is 280 000 $ what will be the production rate at "break-even point. If the plant is operated with 100% capacity what will be the gross profit and net profit. For this example tax rate can be taken as 37% over gross profit.

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This question involves calculating the breakeven point and then determining the gross profit and net profit for an industrial operation running at ful... View the full answer