Question: - The total fixed cost for a small manufacturing site that produces metal sheets is $ 500,000 per month, and the variable production cost is
- The total fixed cost for a small manufacturing site that produces metal sheets is $ 500,000 per month, and the variable production cost is $40 per 1 kg. The selling price of 1 kg metal sheet to the buyer is $60.
a) What is the production level in terms of kg on break-even point?
b) Currently, manufacturer produces 2000 kg of metal sheet. How much is the profit or loss of manufacturer?
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