A manufacturer has a monthly fixed cost of $70,000 and a product cost of $13 for each unit produced. The product sells for $20 per unit.
a) What is the profit function?
b) What is the marginal cost?
c) What is the profit on 2,000 units of products, and what can be concluded?
d) How many units should be sold to break-even?
e) Assuming the average cost Cav(X)= C(x)/X; If the manufacturer sold 15,000 units of the product, what was the average cost per unit?