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Posted: August 23rd, 2023
The manager of a small firm is considering whether to produce
PLEASE MAKE THE NECESSARY CHANGES TO THE DATA THAT HAS ALREADY BEEN PUT INTO THE DATA BOXES. PLEASE BE AS DETAILED AS POSSIBLE WITH THE BREAK EVEN POINT AND PROFIT EQUATIONS AND OUTCOMES. The manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of $20,000 per month. In addition to this leasing cost, a production cost of $10 would be incurred for each unit of the product produced. Each unit sold would generate $20 in revenue.Develop a mathematical expression for the monthly profit that would be generated by this product in terms of the number of units produced and sold per month. Then determine how large this number needs to be each month to make it profitable to produce the product.DataResultsUnit Revenue$2,000Total Revenue: 40,000,000Fixed Cost 10,000,000Total Fixed Cost: 10,000,000Marginal Cost$1,000Total Variable Cost: 20,000,000Sales Forecast30,000Profit (Loss): 10,000,000Production Quantity20,000Profit =Break Even =
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