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Q2-23 A firm believes a product's sales volume (S) depends on its unit selling price (P) asS=100-P. The production cost (C) is $1.000+10S. a) Graph the sales volume (S) from

0 10 100 on the x axis, total cost and total income from$0 to $2500 on the y axis, C=$1000+10S, and plot the curve of total income. Mark thebreakeven points on the graph. b) Determine the breakeven point (lowest sales volume at which total sales income just equalstotal production cost). ) Determine the sales volume (S) at which the firm’s profit is a maximum.

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