Compare annual profit when the plant is operating at 90 of

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A planet operation has fixed costs of 2,000,000 per year and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $90 per unit. a. Construct the economic breakeven chart b. Compare annual profit when the plant is operating at 90% of capacity with the plant operation T 100% capacity. Assume that the first 90% of capacity output is sold at $90 per unit and that the remaining 10% of production is sold at $70 per unit.

Reference no: EM13603095

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