Answered

Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Bill’s Mechanical Devices Inc. produces robots for the automotive industry. If its average variable costs are given by AVC = 25, its fixed costs are $2,500, and it charges $75 a robot, what is Bill’s break-even level of output?

Sagot :

Answer:

50 units

Explanation:

The computation of the break even level of output is given below:

TVC = AVC × Q

= 25 × Q

Total cost is

= TVC + FC

= 25Q + $2,500

Total revenue is

= P × Q

= 75Q

Now in Break even

TR = TC

75Q = 25Q + $2,500

Q = $2,500 ÷ 50Q

= 50 units

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.