An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output.
(A) Determine the break-even quantity.
(B) What volume of output will be needed to produce an annual profit of $60,000?
FC = $60,000 per year, VC = $35 per unit, REV = $55 per unit

Question

Quizplus · Accepted Answer

The Answer of An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output.
(A) Determine the break-even quantity.
(B) What volume of output will be needed to produce an annual profit of $60,000?
FC = $60,000 per year, VC = $35 per unit, REV = $55 per unit

An Investment Proposal Will Have Annual Fixed Costs of $60,000