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Fill in the Blank QuestionFill in the blank question.A company sells 800 units at $16 each, has variable costs of $12 per unit, and fixed costs of $1,200. Income is $.

Question

Fill in the Blank QuestionFill in the blank question.A company sells 800 units at 16each,hasvariablecostsof16 each, has variable costs of 12 per unit, and fixed costs of 1,200.Incomeis1,200. Income is .

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Solution

To solve this, we first need to calculate the total revenue and the total variable costs.

Step 1: Calculate total revenue The total revenue is calculated by multiplying the number of units sold by the price per unit. In this case, the company sells 800 units at 16each,sothetotalrevenueis800∗16 each, so the total revenue is 800 * 16 = $12,800.

Step 2: Calculate total variable costs The total variable costs are calculated by multiplying the number of units sold by the variable cost per unit. In this case, the variable cost per unit is 12,sothetotalvariablecostsare800∗12, so the total variable costs are 800 * 12 = $9,600.

Step 3: Calculate income The income is calculated by subtracting the total variable costs and the fixed costs from the total revenue. In this case, the fixed costs are 1,200,sotheincomeis1,200, so the income is 12,800 - 9,600−9,600 - 1,200 = $2,000.

So, the income is $2,000.

This problem has been solved

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