Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4 & 5 A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The
4 & 5
A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. 1 - What volume per month in (units) is required in order to break even? 2- What profit in (\$) would be realized on a monthly volume of 61,000 units? 3. What profit in (\$) would be realized on a monthly volume of 87,000 units? 4. What volume in (units) is needed to obtain a profit of $16,000 per month? 5 - What volume in (units) is needed to provide a revenue of $23,000 per month? (Round your answer to the nearest whole number.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started