With respect to the given data of Problem 11, (a) find the publisher’s breakthrough in printing, the publisher was able to lower its TFC to $40,000….

12. With respect to the given data of Problem 11, (a) find the publisher’s breakthrough in printing, the publisher was able to lower its TFC to $40,000. Draw a chart showing your answer. (b) Find the publisher’s breakeven output and the output that would lead to a total profit of $60, 000 if total fixed costs remained at $100,000 but average variable costs declined to $10. Draw a chart to show your answer. (c) Find the breakeven output at which the publisher earns a profit of $60,000 if the publisher’s total fixed costs remained at $100,000 and its average variable costs at $20 but the publisher charged a price of $40. Draw a chart showing your answer.

Break even Q= TFC/ (P-AVC)a.TFC= 40000P=30AVC= 20Q= 4000/(30-20)= 400 unitsFor a chart we need data on output as well. This is not given by you.BProfits= TR-TFc-TVC= 30Q-10000-10*Q =60000…

 
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