Question

If a firm has a break-even point of 40000units and fixed costs are $60000 the variable cost per unit is $1.00. What will the firm's operating profit be at sales of 30000 units?

Answer 1

To calculate the firm's operating profit at sales of 30000 units, we need to determine the total cost and total revenue. However, since the selling price per unit is not provided, we cannot calculate the total revenue and thus cannot determine the operating profit.

Step-by-step explanation:

To calculate the firm's operating profit at sales of 30000 units, we need to determine the total cost and total revenue.

The total cost is the sum of the fixed costs and the variable costs. In this case, the fixed costs are $60000, and the variable cost per unit is $1.00. So, the total cost would be $60000 + ($1.00 * 30000) = $90000.

The total revenue can be calculated by multiplying the number of units sold (30000) by the selling price per unit. However, the selling price is not provided in the given question, so we cannot determine the total revenue. Without the total revenue, we cannot calculate the operating profit.