While a firm produces 200 units, the total cost of production is $ 4000. When they increase the output to 220, the cost increases to $ 4200. When the firm produces zero output, the cost is $ 1000. a) What is the fixed cost per unit when they produce 200 units?  b) How much sales would they have to sell at a selling price of $ 10 to make a profit of $ 1000?

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter7: Economies Of Scale And Scope
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While a firm produces 200 units, the total cost of production is $ 4000. When they increase the output to 220, the cost increases to $ 4200. When the firm produces zero output, the cost is $ 1000.

a) What is the fixed cost per unit when they produce 200 units? 

b) How much sales would they have to sell at a selling price of $ 10 to make a profit of $ 1000?

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