A Firm Produces Three Products in a Repetitive Process Facility

question 199

Essay

A firm produces three products in a repetitive process facility. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $80. Product C sells for $25; its variable costs are $15. The firm has annual fixed costs of $320,000. Last year, the firm sold 1000 units of A, 2000 units of B, and 10,000 units of C. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of A from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?

---

Definitions:

Patient Position

The arrangement or posture in which a patient is placed for medical examination, treatment, or surgery.

Osteomyelitis

An infection in a bone, which can lead to bone damage unless treated promptly.

Bone Infection

An infection in a bone, also known as osteomyelitis, which can result from bacteria or fungi invading the bone tissue.

Principal Symptom

The main or most significant symptom presented by a patient that often serves as the primary focus of medical diagnosis or treatment.