Answer:
Results are below.
Explanation:
Giving the following information:
Fixed costs= $20,000
Unitary variable cost= $17
Selling price= $28 per unit.
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 20,000 / (28 - 17)
Break-even point in units= 1,818 units
<u>Now, the profit for 1,500 units:</u>
Loss= 1,500*11 - 20,000= -$3,500
