The table below shows the firm's income statement. The business is obviously generating a loss. How would the firm's decision to increase production and sales at given prices impact the loss: INCOME...

Extracted text: The table below shows the firm's income statement. The business is obviously generating a loss. How would the firm's decision to increase production and sales at given prices impact the loss: INCOME STATEMENT 185 REVENUES sales revenues financial revenues extraordinary revenues 185 228 COSTS material costs - Vc costs of services - VC 96 35 labour costs - VC 35 depreciation costs - FC other operating costs - FC interest expenses - FC extraordinary costs - FC 30 22 12 10 PROFIT -43


Extracted text: material costs - VC 96 costs of services - VC 35 labour costs - VC 35 depreciation costs - FC other operating costs - FC 30 22 interest expenses - FC 12 extraordinary costs - FC 10 PROFIT -43 The loss would become smaller because of P > AVC. Fixed costs need to be lowered so that price P becomes larger than AVC. The loss would become larger because of P < ac.="" the="" loss="" would="" become="" larger="" because="" of="" p=""><>