Complete the table at the given levels of output and the

Reference no: EM13477421

Question: Management believes it can sell a new product for $10.00. The fixed costs of production are estimated to be $5,000 and the variable costs are $5.00 per unit.

a. Complete the table at the given levels of output and the relationships between quantity and fixed costs, quantity and variable costs, and quantity and total costs.

Quantity	Total Revenue	Variable Costs	Fixed Costs	Total Costs	Profits (Loss)
0
500
1,000
1,500
2,000
2,500
3,000

b. Determine the breakeven point using the table and use the following equation to calculate breakeven point:

Q = (FC)/(P-V)

c. What would happen to the total revenue schedule, the total cost schedule, and the breakeven level of output if management determined that fixed costs would be $8,000 instead of $5,000?

Reference no: EM13477421

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