Answer to Question #130767 in Economics for Ashita

Question

If the unit variable cost for each computer is $350 and the manufacturer has fixed costs totaling $2

million, how many computers must this manufacturer sell to break even? How many must it sell to

realize a profit of $50 million?

Answer 1

To calculate the break even and exact profit quantity we need to know the selling price. So, it is impossible to calculate the required quantities.