the profit after selling each kg and before taxes is 0.04$. Calculate a- the break-even point as a fraction or as a percentage of the total production capacity. b- Calculate the net profit if the taxes were 50%of the gross profit.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 11RQ: What is die difference between accounting and economic profit?
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I want a or b ??please I need now
The cost of a chemical plant was 5
million dollars produces a product at a
rate of 20 millions kilograms per year
and the selling price is 0.2 $/kg. If the
cost of raw material per kg is 0.1$, the
cost of utilities per kg is 0.01$ and
labor cost per kg is 0.02 $. ASsume that
the profit after selling each kg and
before taxes is 0.04$. Calculate a- the
break-even point as a fraction or as a
percentage of the total production
capacity. b- Calculate the net profit if
the taxes were 50%of the gross profit .
Transcribed Image Text:The cost of a chemical plant was 5 million dollars produces a product at a rate of 20 millions kilograms per year and the selling price is 0.2 $/kg. If the cost of raw material per kg is 0.1$, the cost of utilities per kg is 0.01$ and labor cost per kg is 0.02 $. ASsume that the profit after selling each kg and before taxes is 0.04$. Calculate a- the break-even point as a fraction or as a percentage of the total production capacity. b- Calculate the net profit if the taxes were 50%of the gross profit .
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