Please help me solve this problem.
A manufacturer has a monthly fixed cost of $40,000 and a production cost of $9 for each unit produced. The product sells for $16 per unit. If the manufacturer produces and sells 3000 units per month, indicate whether he will have a profit, loss or break-even.
2007-09-03 15:35:39 · 8 answers · asked by susan h 1 in Science & Mathematics ➔ Mathematics
(3000 x 16) = 48,000 revenue
(3000 x 9) = 27,000 production costs
40,000 fixed cost
48,000 - 67,000 = -19,000
$19,000 loss
is manufacturing 5715 units in a month when you turn a profit
2007-09-03 15:49:08 · answer #1 · answered by Will 4 · 0⤊ 0⤋
Monthly cost = fixed costs + unit cost * number of units
= 40000 + 9 * 3000
= 67000
Monthly sales = sales price * number of units
= 16 * 3000
= 48000
Profit = sales - costs
= 48000 - 67000
= -19000
The manufacturer has a loss of 19000.
2007-09-03 22:58:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Cost= $40,000+($9 x 3000)=$67,000
Revenue=$16 x 3000=$48,000
It's a loss, $19,000
2007-09-03 22:42:22 · answer #3 · answered by redy_salem 2 · 0⤊ 0⤋
3000 units x $16 = 48,000
3000 units x $9 =27,000
48,000-27,000= $21,000 made
since there's a fixed cost of $40,000 and $21,000 is made, he will have a loss of $19,000.
2007-09-03 22:45:04 · answer #4 · answered by crystalline.angel 2 · 0⤊ 0⤋
Cost:
$40000 + $9 * 3000 = $67000
Income:
$16 * 3000 = $48000
$48000 - $67000 = $-19000
Loss
2007-09-03 22:43:13 · answer #5 · answered by Rayray 1 · 0⤊ 0⤋
$16 minus $9=$7 profit each unit times 3,000 units=$21,000 monthly income
$40,000 mo. cost less $21,000 mo. income leaves a $19,000 LOSS each month....Bummer!
2007-09-03 22:44:11 · answer #6 · answered by dreamgirl 5 · 0⤊ 0⤋
3000 x 9= $27000
3000 x 16 = $48000
48000-27000=21000 and than -40000= $-19000 loss
2007-09-03 22:42:21 · answer #7 · answered by Gee Kai 4 · 0⤊ 0⤋
(3000 x 16) - (3000 x 9) - 40000
(3000 x 7) - 40000
21000 - 40000
= -19000
so they are losing money
2007-09-03 22:43:27 · answer #8 · answered by Aj 2 · 0⤊ 0⤋