Final answer:
The original question references mowers but provides data for computer production. For the computer company example, we would subtract the total production cost from the total revenue to determine if the firm is making a profit or loss at the $500 selling price per unit.
Step-by-step explanation:
When evaluating whether a company is making a profit or a loss, it is important to consider both its fixed costs and marginal costs. The provided information reveals that a computer company has a fixed cost of $250 and various marginal costs associated with producing more units. If the computers are sold for $500 each, one must calculate both the total cost and total revenue to determine profitability.
However, the question appears to be about a discrepancy between the provided information, which is about computer production, and the actual question, which mentions mowers. It is important to address this inconsistency to ensure a correct response. The student is likely discussing a hypothetical scenario where mowers are produced, with the intent to understand the average profit per mower but has used data regarding a computer company instead. The actual average profit per mower cannot be determined without the relevant cost and revenue data for the mowers.
If the student meant to refer to the computer company's data, then they would need to consider that for a sale price of $500 per computer, we must sum the fixed costs with the aggregate marginal costs of production and then subtract the total cost from the total revenue ($500 times the number of units sold) to ascertain if the company is operating at a profit or a loss. No precise profit or loss amount for the mower can be provided without the correct data.