Problem
Augusta LLC has a plant capacity that can produce 4,000 units annually. Its predicted operations for the year are as follows:
Sales (1,000 units at $75 each)
|
$75,000
|
Manufacturing costs:
|
|
Variable
|
$30 per unit
|
Fixed
|
$40,000
|
Marketing and administrative costs:
|
|
Variable
|
$8 per unit
|
Fixed
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$20,000
|
What is the current operating profit?