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Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits? ii. What profit (or loss) will Go Green have if it sells 30,000 kits? iii. How many kits will Go Green have to sell to earn a

Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits? ii. What profit (or loss) will Go Green have if it sells 30,000 kits? iii. How many kits will Go Green have to sell to earn a

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
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Answer all parts please

Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7.

a. What is the break-even point in number of kits?

b. How many kits does Go Green needs to sell to earn a profit of $70,000?

c. If the total fixed cost increases to $160,000 next year:

i. What will Go Green's break-even point be in number of kits?

ii. What profit (or loss) will Go Green have if it sells 30,000 kits?

iii. How many kits will Go Green have to sell to earn a profit of $70,000?

 

 

 

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