the cost to produce one compact disc is $125 plus a​ one-time fixed cost of $2400. The revenue received from selling one compact disc is $10.

Answer 1

To calculate the cost to produce one compact disc, we need to add the variable cost ($125) to the fixed cost ($2400):

Cost = Variable cost + Fixed cost
Cost = $125 + $2400
Cost = $2525

Therefore, the cost to produce one compact disc is $2525.

The revenue received from selling one compact disc is $10.

Profit = Revenue - Cost
Profit = $10 - $2525
Profit = -$2515

Therefore, the profit from selling one compact disc is -$2515. This means that for every CD sold, the company is losing $2515.