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A plant is currently producing 100,000 piece/year of product. The variable cost (which is proportional to production rate) is $1,000,000 /year. The fixed charges including
A plant is currently producing 100,000 piece/year of product. The variable cost (which is proportional to production rate) is $1,000,000 /year. The fixed charges including overhead and general expenses are $500,000 /year. The plant sells all the product it produces and is currently making a profit of $300,000 /year. Assume the price of the product does not change, the break-even production rate in piece/year is: Hint: You need to find the price per unit first, Revenue = price/unit x number of units. Profit = Revenue fixed cost variable cost Break-even point means profit is zero. Report your answer to 0 decimal place. Do not include the units
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