Kent Co. manufactures a product that sells for $40.00. Fixed costs are $174,000 and variable costs are $18.00 per unit. Kent can buy a new production machine that will increase fixed costs by $12,000 per year, but will decrease variable costs by $2.00 per unit. Compute the revised break-even point in dollars with the purchase of the new machine.

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.