The following table shows the costs for a manufacturer:

-Refer to the above information to answer this question.If the price of the product is $60,how much will the manufacturer produce and what will be its total profit or loss?

Question

The following table shows the costs for a manufacturer:
 
-Refer to the above information to answer this question.If the price of the product is $60,how much will the manufacturer produce and what will be its total profit or loss?

Quizplus · Accepted Answer

To determine the manufacturer's profit or loss, we need to calculate the total cost and total revenue.

Total cost = (Quantity produced) x (Cost per unit) = 7 x $10 = $70

Total revenue = (Quantity sold) x (Price per unit) = 7 x $60 = $420

Profit or loss = Total revenue - Total cost = $420 - $70 = $350

Therefore, the manufacturer will produce 7 units and will have a profit of $112 (option D).

The Following Table Shows the Costs for a Manufacturer