Company fixed cost = $10 million = $10,000,000
Variable cost per pair = $5
Company charges each pair = $15
Hence the company makes $10 profit per pair
regardless the company fixed cost and only considering the variable cost.
Let subtract the variable cost per pair from the
company charging each pair = 15 - 5 = $10
Thus the company now makes $10 per pair, and it has
to sell 1,000,000 pairs of gloves to reach the break-even point. The break-even
point refers to the point where total cost and revenue are equal.
<span>Thus for 1,000,000 pairs, the company total earning =
10 x 1,000,000 = $10,000,000 = $10 million </span>
Answer:
-$11,000 is the economic profit or we can say it is a loss.
Step-by-step explanation:
The job paid Bob = $100000
The insurance cost is = $8,000
The material cost is = $15,000
The lease payments are = $8,000
The sales revenue is $120,000.
So, Bob's economic profit is: 
Therefore, his economic profit is -$11000.
My answer may not be correct but I feel pretty confident. The answer is $549.08
