The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo
1 answer:
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Answer:
The correct answer is option b.
Explanation:
The number of units of output sold is 8,000 .
The sales revenue is $9,600,000 .
The variable costs are $6,000,000 .
The fixed costs are $2,600,000.
The price of the product
=
=
= $1,200
The average variable cost is
=
=
= $750
Profit = TR - TC
Profit =
$1,270,000 = $1,200Q - $750Q - $2,600,000
$3,870,000 = $450Q
Q =
Q = 8,600 units