What is the firm annual profit or loss

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Reference no: EM132010218

A firm has the capacity to produce 736,581 units of a product each year. At present, it is operating at 57 percent of capacity. The firm's annual revenue is $1,017,650. Annual fixed costs are $438,867 and the variable costs are $.67 cents per unit. The following equations will be useful.

Profit = Revenue - Costs

Revenue = Price each * quantity

Costs = Fixed Cost + Variable Costs

Variable Cost = Variable Cost per unit * number of units

At the break even point, Profit = 0

1. What is the firm's annual profit or loss?

2. At what volume of sales does the firm break even?

Please show this in excel formula

Reference no: EM132010218

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