5) plagiarism copiers, inc., is planning a new desktop copier. for the first year, the fixed cost of setting…

5) plagiarism copiers, inc., is planning a new desktop copier. for the first year, the fixed cost of setting up the production line is $26,700. the variable cost for producing each copier is $200. the revenue from each copier is $630. find the profit or loss from the production and sale of 900 copiers.

5) plagiarism copiers, inc., is planning a new desktop copier. for the first year, the fixed cost of setting up the production line is $26,700. the variable cost for producing each copier is $200. the revenue from each copier is $630. find the profit or loss from the production and sale of 900 copiers.

Answer

Explanation:

Step1: Calculate total revenue

Revenue per copier is $630, and 900 copiers are sold. So total revenue $R = 630\times900=567000$.

Step2: Calculate total variable cost

Variable cost per copier is $200, and 900 copiers are produced. So total variable cost $VC = 200\times900 = 180000$.

Step3: Calculate total cost

Total cost $C$ is the sum of fixed cost $FC$ and total variable cost. Fixed cost $FC = 26700$, so $C=26700 + 180000=206700$.

Step4: Calculate profit

Profit $P=R - C$. Substitute $R = 567000$ and $C = 206700$ into the formula, we get $P=567000-206700 = 360300$.

Answer:

The profit is $360300$.