Answer:
To break even it must be molded 1280 handles weekly.
The profit if 1500 handles are produced and sold is $440
Step-by-step explanation:
To break even, the amount of total cost must be the same as the amount of revenues.
Total Cost is Fixed cost plus unitary variable cost multiplied by the produce quantity.
Total cost= FC + vc*Q
Where
FC=Fixed cost
vc=unitary variable cos
Q=produce quantity
Revenue= Price * Q
Break even FC + vc*Q=Price * Q
Isolating Q
FC=(Price * Q)-(vc*Q)
FC=(Price-vc) * Q
Q= FC/(Price-vc)
Q= $2560/($3.00-$1.00)=1280
If we sold 1500 handles
Profit = Revenue- Total cost =(Price * Q)-(FC + vc*Q)
P=$3.00 *1500-$2560 - $1.00*1500=
P=$4500-$2560-$1500=440
