Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

Exercise 24

Measer Enterprises produces standardized telephone keypads and operates in a highly competitive market in which the keypads are sold for $4.50 each. Because of the nature of the production technology, the firm can produce only between 10,000 and 13,000 units per month, in fixed increments of 1,000 units. Measer has the following cost structure:
Production and Cost DataUnits Produced
Required:
At what output level should the firm operate