break-even analysis

A small firm manufactures laptops with a projected selling price of £1,000. The firm has fixed costs of £90,000 per month and variable costs per laptop are £400.

(a) Find the firm’s break-even level of monthly output.

(b) If the firm plans to sell 200 laptops per month, calculate its expected monthly profit.

(c) If the firm is making a loss of £54,000 per month, calculate the increase in production that would be required to make a profit of £18,000

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