Problem $19-01$

Management believes it can sell a new product for $$8\mathrm{.}00.$ The fixed costs of production are estimated to be $$6,000,$ and the variable costs are $$3\mathrm{.}00$ a unit.

a$.$ Complete the following table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs. Round your

answers to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if any.

b$.$ Determine the break$-$even level using the above table and use the Exhibit $19\mathrm{.}5$ to confirm the break$-$even level of output. Round your answers for the break$-$even level to the nearest

whole number. Round your answers for the fixed costs, variable costs, total costs, and profits $($losses$)$ to the nearest dollar. Enter zero if necessary. Use a minus sign to enter losses, if

any.

Quantity

Fixed Costs

Total Costs

$\frac{\text{P}\text{r}\text{o}\text{f}\text{i}\text{t}\text{s}(Losses)}{\text{\$}}$

c$.$ What would happen to the total revenue schedule, the total cost schedule, and the break$-$even level of output if management determined that fixed costs would be $$12,000$ instead of

$$6,000?$ Round your answer for the break$-$even level of output to the nearest whole number.

If fixed costs were $$12,000$ instead of $$6,000$ the total revenue schedule $[$

$|$ and the total cost schedule

The new break$-$even level of output is

units.