A certain firm has the capacity to produce 650,000 units of a certain product per year (max capacity). At, present it is operating at 624 capacity. The firma annual income is P4, 160,000. Annual fixed cost is P1, 920,000 and the variable cost are equal to P3.56 per unit 1. What is the annual profit or lOss? 2. Identify if profit or loss. 3. At what volume of sale does the firm break even?

A certain firm has the capacity to produce 650,000 units of a certain product per year (max capacity). At, present it is operating at 624 capacity. The firma annual income is P4, 160,000. Annual fixed cost is P1, 920,000 and the variable cost are equal to P3.56 per unit 1. What is the annual profit or lOss? 2. Identify if profit or loss. 3. At what volume of sale does the firm break even?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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