A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone. The variable cost for each cone is £3. The annual overhead cost for the production line is £100,000. Current production is 30,000 cones/units per annum. What is the annual profit generated by this production line? £240,000 £50,000 £50,000 £150,000 O £90,000 Hide hint for Question 14 The question is asking for the annual profit and not the contribution. Use Break-even theory.

Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
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A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone. The variable cost for
each cone is £3. The annual overhead cost for the production line is £100,000. Current production is 30,000
cones/units per annum.
What is the annual profit generated by this production line?
£240,000
£50,000
£50,000
£150,000
£90,000
Hide hint for Question 14
The question is asking for the annual profit and not the contribution.
Use Break-even theory.
Transcribed Image Text:A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone. The variable cost for each cone is £3. The annual overhead cost for the production line is £100,000. Current production is 30,000 cones/units per annum. What is the annual profit generated by this production line? £240,000 £50,000 £50,000 £150,000 £90,000 Hide hint for Question 14 The question is asking for the annual profit and not the contribution. Use Break-even theory.
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