Author Question: A business produces 4,000 units per month which it sells at 20/unit. Costs include: 10,000 on raw ... (Read 106 times)

lidoalex · **on:** Jul 1, 2018

A business produces 4,000 units per month which it sells at 20/unit. Costs include: 10,000 on raw materials, 15,000 in wages for operators and 10,000 in wages to sales people. If the business is just breaking even, what are its fixed costs:
a. 35,000
b. 40,000
c. 45,000
d. 50,000

Question 2

Given that the firm wants to sell both the versions, how much surplus does buying the no-name brand give the professional chefs?
a. 30
b. 40
c. 50
d. 60