3. The owner of shop is contemplating adding a new product which will require additional monthly payment of Br.6000, variable costs would be Br. 2 per new product & its selling price is Br. 7 each A. How many new products must be sold in order to break even? B. What would be the profit (loss) be if 1000 units were sold in a month? C. How many units must be sold to realize profit of Br. 4000?

3. The owner of shop is contemplating adding a new product which will require additional monthly payment of Br.6000, variable costs would be Br. 2 per new product & its selling price is Br. 7 each A. How many new products must be sold in order to break even? B. What would be the profit (loss) be if 1000 units were sold in a month? C. How many units must be sold to realize profit of Br. 4000?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.1IP

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