Discuss the below:
Q: The manager of a small firm is considering whether to produce a new product that would require leasing some special equipment at a cost of $20,000 per month. In addition to this leasing cost, a production cost of $10 would be incurred for each unit of the product produced. Each unit sold would generate $20 in revenue. Use the table below to fill out the break even point
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Data |
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Results |
| Unit Revenue |
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Total Revenue |
$ |
| Fixed Cost |
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Total Fixed Cost |
$ |
| Marginal Cost |
|
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Total Variable Cost |
$ |
| Sales Forecast |
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Profit (Loss) |
$ |
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| Production Quantity |
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