A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200.
a) How many units must it sell per week to break even?
b) Determine the firm's weekly profit or loss if it sells:
(i) 120 units per week (ii) 250 units per week
c) At what level of sales will the net income be $400 per week?

Question

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The Answer of A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200.
a) How many units must it sell per week to break even?
b) Determine the firm's weekly profit or loss if it sells:
(i) 120 units per week (ii) 250 units per week
c) At what level of sales will the net income be $400 per week?

A Small Manufacturing Operation Can Produce Up to 250 Units