Problem $19-01$

Management believes it can sell a new product for $$24\mathrm{.}50$ per unit. Rent and other costs of production that do not vary with output are estimated to be $$7,000,$ and raw materials and other costs needed to produce each unit are $$20\mathrm{.}50$ per 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 Equation $19\mathrm{.}5$ 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.

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 $$8,000$ instead of $$7,000?$ Round your answer for the break$-$even level of output to the nearest whole number.

If fixed costs were $$8,000$ instead of $$7,000$ the total revenue schedule $[-$Select$-vv$ and the total cost schedule $-$ Select$-.$

The new break$-$even level of output is units.