A Manufacturer Sells Watches for $80 Per Unit

question 214

Multiple Choice

A manufacturer sells watches for $80 per unit. The fixed costs related to this product are $8,000 per month, and the variable costs are $60 per unit. This gives a profit function , where r is the revenue per unit and c is the variable cost per unit. If the manufacturer has a profit of zero, how many watches were sold? ​

• A)800
• B)4,000
• C)400
• D)100
• E)133

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Definitions:

Financial Performance

An overview of how well a business is using its assets to generate profits and cash flow, often analyzed through financial statements.