Answer:
The profit equation is
Profit = Revenue - Cost
Let's assume the revenue per batch is $50,000 and the cost per batch is $35,000. Then the profit equation becomes:
Profit = ($50,000 x number of batches) - ($35,000 x number of batches)
Profit = $15,000 x number of batches
We want to find the number of batches that will give a profit of -$190,000, so we can set up the equation:
-$190,000 = $15,000 x number of batches
Solving for the number of batches, we get:
number of batches = -$190,000 / $15,000
number of batches = -12.67
This indicates that the firm would have to produce and sell around 13 batches of tyres in order to make a -$190,000 profit. However, because you can't produce and sell a fraction of a batch, the corporation would have to sell at least 14 batches to make the needed profit.