Final answer:
After calculating the total revenue ($288,000) and total costs ($166,000) for the given number of units produced and sold, the manufacturer's profit is found to be $122,000. Since this is not one of the provided options, the correct answer is 'None of the above'.
Step-by-step explanation:
To determine the profit for the manufacturer, we must first calculate the total revenue and total costs, then subtract the total costs from the total revenue. The manufacturer has a monthly fixed cost of $70,000.00 and a production cost of $8 for each unit produced. With a selling price of $24 per unit and 12,000 units sold, we would calculate the total revenue as follows:
- Total Revenue = Price per unit × Quantity sold
- Total Revenue = $24 × 12,000
- Total Revenue = $288,000
The total costs include both the fixed costs and the variable costs (production cost per unit times the number of units produced). Therefore:
- Total Costs = Fixed Costs + (Production Cost per unit × Quantity produced)
- Total Costs = $70,000 + ($8 × 12,000)
- Total Costs = $70,000 + $96,000
- Total Costs = $166,000
Now, we can find the profit by subtracting the total costs from the total revenue:
- Profit = Total Revenue - Total Costs
- Profit = $288,000 - $166,000
- Profit = $122,000
Therefore, the manufacturer's profit is not one of the provided options, so the correct answer is f. None of the above.