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?
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?
2 answers
Did I really say that? How about
10n - 450000
dang!
10n - 450000
dang!