A business produces 4,000 units per month which it sells at ...

[lidoalex]

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

[jordangronback]

Answer to Question 1

c

Answer to Question 2

a

[lidoalex]

Excellent

[Joy Chen]

TYSM