The Waste NotWant Not ([WN]²) company makes compressed soap tablets that can be "rehydrated" for use by the consumer.[WN]? has estimated fixed costs of $125,000 per month for a production volume of up to 400,000 tablets per month. The tabletsare sold for $1.25 per tablet. At full capacity (400,000 tablets), the total variable cost is $180,000 per month.Note: Total variable cost = variable cost per unit X number of units produced. If [WN]? operates at 100% capacity, what is their expected annual (yearly) profit?

Answer: Given, Fixed cost up to 400,000 tablets per month = $125,000 per month Price of tablet =…

Answered: The Waste Not – Want Not ([WN]²)…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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