Solution-What is the price for each unit

What is the price for each unit

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Reference no: EM131938404

A firm has the capacity to produce 1,495,180 units of a product each year. At present, it is operating at 68 percent of capacity. The firm's annual revenue is $1,258,150. Annual fixed costs are $280,887 and the variable costs are $.28 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 price for each unit?

Reference no: EM131938404

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What is the price for each unit

Reference no: EM131938404

Reference no: EM131938404

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