12 Precast Pools, Inc. sells their product for $3,000 each. At a volume of 20 units, their labor, materials, overhead, and other costs total $60,000, and at a volume of 40 units, the total is $80,000. (a) What is your best estimate of the variable cost per unit? (b) Estimate the fixed costs. (c) At what volume does the firm break even? (d) Estimate the profit at a volume of 60 units.

12 Precast Pools, Inc. sells their product for $3,000 each. At a volume of 20 units, their labor, materials, overhead, and other costs total $60,000, and at a volume of 40 units, the total is $80,000. (a) What is your best estimate of the variable cost per unit? (b) Estimate the fixed costs. (c) At what volume does the firm break even? (d) Estimate the profit at a volume of 60 units.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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