Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits? ii. What profit (or loss) will Go Green have if it sells 30,000 kits? iii. How many kits will Go Green have to sell to earn a
Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits? ii. What profit (or loss) will Go Green have if it sells 30,000 kits? iii. How many kits will Go Green have to sell to earn a
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 9WNG
Related questions
Question
Answer all parts please
Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7.
a. What is the break-even point in number of kits?
b. How many kits does Go Green needs to sell to earn a profit of $70,000?
c. If the total fixed cost increases to $160,000 next year:
i. What will Go Green's break-even point be in number of kits?
ii. What profit (or loss) will Go Green have if it sells 30,000 kits?
iii. How many kits will Go Green have to sell to earn a profit of $70,000?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
