A Manufacturer Has a Monthly Fixed Cost of $35,000 and Production

Multiple Choice

A manufacturer has a monthly fixed cost of $35,000 and production cost of $4 for each unit produced. The product sells for $10/unit. Compute the profit (loss) corresponding to production level of 8,000 units.

A) The profit is $14,000.
B) The profit is $14,500.
C) The profit is $11,000.
D) The profit is $13,000.