ABC Company manufactures a product The variable cost per unit is 5 and the fixed costs are 200,000 The selling price per unit is 18 If they produce 2 ,000 units, what is the profit or loss?

Question

ABC Company manufactures a product The variable cost per unit is 5 and the fixed costs are 200,000 The selling price per unit is 18 If they produce 2 ,000 units, what is the profit or loss?

Answer 1

To calculate the profit or loss, we need to find the total revenue and subtract the total costs from it.Total Revenue = Selling Price per Unit * Number of UnitsTotal Revenue =

36,000Total Costs = Fixed Costs + Variable Cost per Unit * Number of UnitsTotal Costs =

5 * 2000Total Costs =

10,000Total Costs =

36,000 -

174,000Therefore, the profit or loss is -$174,000.

Soru

ABC Company manufactures a product The variable cost per unit is 5 and the fixed costs are 200,000 The selling price per unit is 18 If they produce 2 ,000 units, what is the profit or loss?

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