Answer:
1. What was the product's operating income(loss) last year = $90,000 loss
2. What is the product's Break even point in unit sales and dollars
• Break even sales in units 18,000
• Break even i n sale dollars $1,260,000
3. Maximum annual profit given an increment of 5,000 units and reduction of sales price per unit by $2.
• Net profit of $20,000
4. What would be the break even point in unit sales and dollars using the selling price that you determined in requirement 3.
• Break even sales units 19,285.7
• Break even in sales dollars $1,311,427.6
Explanation:
Please see attached detailed solution to the above questions and answers.
Answer:
The correct answer is letter "C": be a straight line.
Explanation:
The Production Possibility Frontier (<em>PPF</em>) aims to determine what the maximum production would be using finite factors. Typically, the higher production of a good implies lowering the production of another. The PPF is represented by a graph with a vertical "X" axis and a horizontal "Y" axis for easiness in understanding.
Thus, if the factors for production were perfectly adaptable, the PPF curve will display a straight line in a graph.