2. A certain firm has the capacity to produce 650,000 units of a certain product per year. At present, it is operating at 62% capacity. The firm's annual income is P 4,160,000.00. Annual fixed cost is P 1,920,000.00 and the variable costs are equal to P 3.56 per unit. a. What is the annual profit or loss? b. At what volume of sales does the firm break even?

2. A certain firm has the capacity to produce 650,000 units of a certain product per year. At present, it is operating at 62% capacity. The firm's annual income is P 4,160,000.00. Annual fixed cost is P 1,920,000.00 and the variable costs are equal to P 3.56 per unit. a. What is the annual profit or loss? b. At what volume of sales does the firm break even?

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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