A recliner corporation wants to determine how many recliners it must sell in order to earn a profit of $32,000 per month. The price of each recliner is $1,000, and the monthly average variable cost is $400. What is the required monthly sales volume if the corporation's fixed costs are $4,000 per month?

A recliner corporation wants to determine how many recliners it must sell in order to earn a profit of $32,000 per month. The price of each recliner is $1,000, and the monthly average variable cost is $400. What is the required monthly sales volume if the corporation's fixed costs are $4,000 per month?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

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