6. A firm has estimated that the fixed costs of operations for a new product at $2,000,000 per year. Variable costs will depend on the volume of production, and has been quantified at $250 per unit. If the firm plans to sell the product for $1500. What volume of sales is needed for this product to break-even?

6. A firm has estimated that the fixed costs of operations for a new product at $2,000,000 per year. Variable costs will depend on the volume of production, and has been quantified at $250 per unit. If the firm plans to sell the product for $1500. What volume of sales is needed for this product to break-even?

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

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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