A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit

What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year?


BEP = 60 units; TR = $40,000, TC = $19,000, therefore Profit = $21,000.

Business

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