Imagine that a friend asks you whether or not you should start a washing machine business. For this, it provides you with the following information which is 100% accurate. Price of washing machines: $300,000 Unit variable cost of washing machines: $150,000 Annual fixed cost: $20,000,000 Furthermore, it is known that the annual sale of washing machines will be equal to 100 units. Based on the above information: Do you recommend your friend carry out the business? Yes, since there are positive utilities No, since the profits are negative

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Answer to a math question Imagine that a friend asks you whether or not you should start a washing machine business. For this, it provides you with the following information which is 100% accurate. Price of washing machines: $300,000 Unit variable cost of washing machines: $150,000 Annual fixed cost: $20,000,000 Furthermore, it is known that the annual sale of washing machines will be equal to 100 units. Based on the above information: Do you recommend your friend carry out the business? Yes, since there are positive utilities No, since the profits are negative

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Birdie

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Ingresos totales = Precio por unidad * Número de unidades vendidas Ingresos totales = $300 000/unidad * 100 unidades = $30 000 000 Costo Total = Costo Fijo + (Costo Variable por unidad * Número de unidades vendidas) Costo total = $20 000 000 + ($150 000/unidad * 100 unidades) = $35 000 000 Beneficio = Ingresos totales - Costo total Beneficio = $30.000.000 - $35.000.000 = -$5.000.000 El beneficio es negativo. Respuesta correcta No, ya que las ganancias son negativas.

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