4. Kermit\'s Kadiddles Ltd. sells kadiddles at a price of $8 each. Following is

Question

4. Kermit's Kadiddles Ltd. sells kadiddles at a price of $8 each. Following is a table showing Kermit's fixed and variable production costs. UNITS OF OUTPUT PER DAY FIXED COSTS VARIABLE COSTS COSTS TOTAL REVENUE 400 400 | - 100 1000 0000 1700 2100 1600 220 2 600 2400 400 2500 2900 3200 400 3200 600 L00O 1 4400 1480011,500 400 200 400 300 400 4000 500 600 400 a) Complete the remaining 2 columns. b) On a piece of graph paper, draw the total revenue, total costs, and variable costs curves. c) The breakeven point for this firm isunits per day. d) The graph indicates that, before this firm should go out of business, its sales should fall below a level of _ units per day 5. Following are the cost and revenue data for the Phaultless Fradistat Company

Explanation / Answer

c) Break even point for this firm is 600 units per day. (Quantity where Total Revenue = Total Costs)

d)

Firm would go out of business where Total revenue < Total variable costs

Sales should fall below a level of 200 units per day.

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