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Question - Comma Ltd. produces and sells a product called Gold. The current level of units of Gold sold equal 6,000 units. Fixed costs equal £200,000. Gold is sold for £40 per unit. The variable cost per unit is £20.
Required -
a) Is Comma Ltd. selling a profitable amount of Gold? Explain your answer in detail
b) Which would be your advice for the company?
c) Draw a graph related to your previous answers in a) and b).
d) Would Comma Ltd. be selling a profitable amount of Gold if fixed costs are now £4,000, all else equal? Explain your answer in detail.
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