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?

To calculate the profit or loss, we need to find the total revenue and subtract the total costs from it.<br /><br />Total Revenue = Selling Price per Unit * Number of Units<br />Total Revenue = $18 * 2000<br />Total Revenue = $36,000<br /><br />Total Costs = Fixed Costs + Variable Cost per Unit * Number of Units<br />Total Costs = $200,000 + $5 * 2000<br />Total Costs = $200,000 + $10,000<br />Total Costs = $210,000<br /><br />Profit or Loss = Total Revenue - Total Costs<br />Profit or Loss = $36,000 - $210,000<br />Profit or Loss = -$174,000<br /><br />Therefore, the profit or loss is -$174,000.