Question

You are given the following total costs for a production facility for protective cases for laptop...

You are given the following total costs for a production facility for protective cases for laptop computers:

Number of units
Produced ('000)
0 100 200 300 400
Total Cost ($'000) 600    2,000 3,200 4,200 6,600


Assume the production facility produces where average variable costs are minimized. If the price is $12.50 per case, what is your gain or loss? (If a loss, enter it as a negative number. Don't enter this as 'thousands of dollars' -- take into account that costs and output units are in thousands.)

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