Asked by Peter

Bentley Plastics Ltd. has annual fixed costs of $450,000 and variable costs of $15 per unit. The selling price per unit is $25.
What will be the annual net income at annual sales of:

50,000 units?

$1,000,000?
Answered by Steve
net income is revenue-costs
for n units, that is

25n - (450000+15n)
= 40n - 450000

extra credit: how many units must they sell before they start making money?
Answered by Steve
Did I really say that? How about

10n - 450000

dang!
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