A manufacturer has a monthly fixed cost of USD 60,000 and a production cost of USD 9 for each unit produced. The product sells for USD 17 per unit. If the manufacturer produces and sells 3,000 units per month, indicate whether he will have a profit, loss or break-even.

To determine whether the manufacturer will have a profit, loss, or break-even, we need to calculate the total cost and the total revenue for producing and selling 3,000 units per month.

### 1. Calculating the Total Cost
The total cost is composed of the fixed cost and the variable cost.

- **Fixed cost**: USD 60,000 per month (this cost does not change regardless of the number of units produced).
- **Variable cost**: USD 9 per unit produced.

The total variable cost for producing 3,000 units is:
\[
\text{Variable cost} = \text{Number of units} \times \text{Cost per unit} = 3,000 \times 9 = 27,000 \text{ USD}
\]

The total cost (fixed cost + variable cost) is:
\[
\text{Total cost} = \text{Fixed cost} + \text{Variable cost} = 60,000 + 27,000 = 87,000 \text{ USD}
\]

### 2. Calculating the Total Revenue
The total revenue is the amount of money the manufacturer earns from selling the units.

\[
\text{Total revenue} = \text{Number of units} \times \text{Selling price per unit} = 3,000 \times 17 = 51,000 \text{ USD}
\]

### 3. Determining Profit or Loss
To determine whether there is a profit, loss, or break-even, we subtract the total cost from the total revenue:

\[
\text{Profit (or Loss)} = \text{Total revenue} - \text{Total cost} = 51,000 - 87,000 = -36,000 \text{ USD}
\]

### Conclusion
The manufacturer has a **loss of USD 36,000** for producing and selling 3,000 units per month.

Would you like more details or have any questions?

Here are 5 related questions to explore further:
1. What is the break-even point for the manufacturer?
2. How many units should be sold to achieve a target profit of USD 10,000?
3. What is the impact of reducing the fixed cost by 10% on profitability?
4. How does an increase in the selling price to USD 20 per unit affect the outcome?
5. What is the effect of increasing the production cost by 15% per unit?

**Tip:** Always consider both fixed and variable costs when calculating the overall cost of production to assess profitability accurately.

A manufacturer has a monthly fixed cost of USD 60,000 and a production cost of USD 9 for each unit produced. The product sells for USD 17 per unit. If the manufacturer produces and sells 3,000 units per month, indicate whether he will have a profit, loss, or break-even.

Determine whether a manufacturer incurs a profit, loss, or break-even for producing and selling 3,000 units per month. This problem involves calculating fixed and variable costs, total revenue, and comparing them to assess profitability. Suitable for students in Grades 9-12.

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