A firm has the capacity to produce 1,131,020 units of a product each year. At present, it is operating at 36 percent of capacity. The firm’s annual revenue is $871,726. Annual fixed costs are $163,161 and the variable costs are $.49 cents per unit.  The following equations will be useful.

Profit = Revenue – Costs

Revenue = Price each * quantity

Costs = Fixed Cost + Variable Costs

Variable Cost = Variable Cost per unit * number of units

At the break even point, Profit = 0

What is the firm’s annual profit or loss?