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Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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A certain firm has the capacity to produce 650,000 units
of product per year. At present it is operating at 62%
capacity. The firm's annual income is PhP 4,160,000.
Annual fixed costs are PhP 1,920,000 and the variable
costs are equal to PhP 3.56 per unit of product. What is
the firm's annual profit or loss?
Transcribed Image Text:A certain firm has the capacity to produce 650,000 units of product per year. At present it is operating at 62% capacity. The firm's annual income is PhP 4,160,000. Annual fixed costs are PhP 1,920,000 and the variable costs are equal to PhP 3.56 per unit of product. What is the firm's annual profit or loss?
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