Reflex Manufacturing Corp. manufactures composters at a unit variable cost of $43. It sells them for $70 each. It can produce a maximum of 3200 composters per month. Annual fixed costs total $648,000.
a. What is the break-even volume per month?
b. What is the monthly net income at a volume of 2500 composters per month?
c. What is the monthly net income if Reflex operates at 50% of capacity during a recession?
Use the graphical approach to CVP analysis to solve the problem.