A company sells an item for $25 each. It has fixed costs of $2025 per month and variable costs of $2.50 per item. It has the capacity to produce 3000 items per month.

a. What is the break-even revenue and volume per month?

b. How many items would it have to sell to earn a net income of $6750 per month? C. What is the net income at capacity if the variable costs decreased by $0.50 per item?

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