Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price.Let's assume that the demand for your pictures is strong,so the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC)total $32,000 (real estate taxes,interest on a bank loan,etc. )and unit variable cost (UVC)for a picture frame is $40 (labor,glass,frame,and matting).If your picture frame store sold 2,000 picture frames,what would your profit (or loss)be?
A)a loss of $32,000
B)$0-just able to break-even
C)$32,000 profit
D)$112,000 profit
E)$128,000 profit

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The Answer of Suppose you are the owner of a picture frame store and you wish to calculate how many pictures you must sell to cover your fixed and variable costs at a given price.Let's assume that the demand for your pictures is strong,so the average price customers are willing to pay for each picture frame is $120.Also,suppose your fixed costs (FC)total $32,000 (real estate taxes,interest on a bank loan,etc. )and unit variable cost (UVC)for a picture frame is $40 (labor,glass,frame,and matting).If your picture frame store sold 2,000 picture frames,what would your profit (or loss)be?
A)a loss of $32,000
B)$0-just able to break-even
C)$32,000 profit
D)$112,000 profit
E)$128,000 profit

Suppose You Are the Owner of a Picture Frame Store