Question a firm has the capacity to produce 1152060 units, Ask an Expert

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Question: A firm has the capacity to produce 1,152,060 units of a product each year. At present, it is operating at 62 percent of capacity. The firm's annual revenue is $830,943. Annual fixed costs are $179,410 and the variable costs are $.59 cents per unit.

The following equations will be useful.

Profit = Revenue - Costs

Revenue = Price each * quantity

Costs = Fixed Cost + Variable Costs

Variable Costs = Fixed Cost + (cost each * quantity)

At the break even point, Profit = 0

What is the firm's annual profit or loss?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92812674

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