Final answer:
The profit for a firm is calculated by subtracting total costs from total revenue. An example given shows a profit of $60 when selling 40 units at a price higher than average cost. The same method can be applied to calculate profit at any quantity, like 60,000 units, provided price and average cost data are consistent.
Step-by-step explanation:
The student is asking about calculating profit when the demand is equal to the average units sold, which is given as 60,000 units. Based on the information provided, calculating profit requires determining the total revenue and total costs. Examples given indicate that at a quantity of 40 units, with a selling price of $16 per unit, and an average cost of $14.50 per unit, the firm's profit is the difference between total revenue ($640) and total costs ($580) resulting in a profit of $60. This concept can be applied to find profit at 60,000 units by assuming the price and average cost remain consistent with the growth in quantity.
For instance, if a company has total revenue of $1 million and total costs, including labor, capital, and materials amounting to $950,000 (sum of $600,000 for labor, $150,000 for capital, and $200,000 for materials), the accounting profit would be the difference between the revenue and costs, which is $50,000.