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A firm has the capacity to produce 1,251,940 units of a product each year. At present, it is operating at 90 percent of capacity. The firm's annual revenue is $1,398,620. Annual fixed costs are $502,594 and the variable costs are $.46 cents per unit. The following equations will be useful.
Profit = Revenue - Costs
Revenue = Price each * quantity
Costs = Fixed Cost + Variable Costs
Variable Cost = Variable Cost per unit * number of units
At the break even point, Profit = 0
What is the firm's annual profit or loss?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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