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Given the following data, answer the following questions:
Fixed costs: $8,000/year
Variable costs: $6/unit
Price: $10/unit
1. What would be the profit or loss if 7000 units were sold? 2. How many units would need to be produced and sold in order to break even? 3. How many units would need to be produced and sold in order to make a profit of $5,000? 4. If design and effective capacities were 10,000 and 8,000 units per year respectively, and actual output was 7,000, what was the utilization of this facility? 5. If design and effective capacities were 10,000 and 8,000 units per year respectively, and actual output was 7,000, what was the efficiency of the facility?
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