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Average profit is the profit earned per unit of output sold. It is calculated as total revenue earned from sales divided by the total output units sold in the market.

The break-even point will be equal to:

= 900/(5.5-4.5) = 900/1 = $900

Assuming x to be the unit of output sold. the profit function will be: (5.5 – 4.5)x - 900

The profit of $500 will be earned when:

=> x - $900 = $500

=> x = $1400

To know the average profit per unit. the profit is to be divided by the total output units sold, i.e. (x – 900)/x

To earn an average profit of $0.25 per unit, the output unit to be sold will be:

=>(x – 900)/x = 0.25

=> x = 1200 units

For an average profit of $0.50 per unit the required output sale will be:

=> (x – 900)/x = 0.5

=> x = $1800 units

Earning an average profit of $1.5 per unit the required sale would be:

=> (x – 900)/x = 1.5

=> x = -1800 units

Thus, earning an average profit of $0.25 and $0.5 requires the sale of 1200 and 1800 units, respectively. But earning an average profit of $1.5 is not possible.