Consider the Following Information What Quantity Would Be Required for a Profit of $2,000

question 39

Short Answer

Consider the following information: $$\begin{array} { l l } \text { Fixed Costs: } & \$ 15,000 \text { per year } \\\text { Variable Costs: } & \$ 1.00 \text { per unit } \\\text { Revenue: } & \$ 1.60 \text { per unit } \\\text { Design Capacity: } & 45,000 \text { units per year } \\\text { Effective Capacity: } & 40,000 \text { units per year } \\\text { Anticipated Output: } & 36,000 \text { units per year }\end{array}$$ What quantity would be required for a profit of $2,000?

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Definitions:

Factors of Production

The inputs required for the production process, including land, labor, capital, and entrepreneurship.

Tight Bureaucracy

A highly structured organizational form with strict rules, procedures, and a clear hierarchy of authority.

Stable Environment

Describes a situation or condition characterized by consistency, predictability, and minimal changes, providing a foundation for growth and development.

Evidence-Based Management

The practice of making managerial decisions and organizational practices based on the best available evidence.