Managerial Economics 2nd Edition by William Boyes

Exercise 18

You have begun a new business of transcential learning. You have fixed costs of $1,800 a month and a variable cost of $48. You charge $16 per session. You can provide sessions at $66 each. Based on this information, calculate the breakeven level of daily output for the firm. After operating for a while, your variable cost rises to $50. What does this mean for the breakeven quantity of output.