A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.

A manufacturing company produced 40,000 boxes of a product that sold for OMR 3 per box. The total variable costs for the 40,000 boxes were OMR 60,000, and the fixed costs were OMR 75,000. (a) How much profit (or loss) resulted? (b) What was the break-even quantity? (c) Assuming that fixed costs remain constant, how many additional boxes will be required for the company to increase profit by OMR 28600.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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