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Alice Freeman assembles presentational gift packs that she sells online

Finance Nov 03, 2020

Alice Freeman assembles presentational gift packs that she sells online. She operates from a small warehouse in New York that she rents for $400 per month. She incurs other fixed costs of $100 per month and sells the gift packs for $10 each (including postage and packaging). She employs two part-time staffs and variable costs are $8 per gift pack. Let X be the monthly break-even output (Xat the point where TR = TC) for Alice Freeman's business: (a) Calculate X (b) Calculate the total cost (TC) and total revenue (TR) at the break-even level of output. (c) Calculate the profit (TR-TC) made by the business if 2,000 gift packs are sold in a month. I

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