A plant operation has fixed costs of $2,000,000 peryear, and its output capacity is 100,000 electrical appliances

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A plant operation has fixed costs of $2,000,000 peryear, and its output capacity is 100,000 electrical appliances per year. The variable cost is $45 perunit, and the product sells for $85 per unit.

a. Construct the economic breakeven chart.

b. Compare annual profit when the plant is operating at 70% of capacity with the plant operation at100% capacity. Assume that the first 70% of capacity output is sold at $85 per unit and that the remaining 30% of production is sold at $55 per unit.

Posted Date: Jun 12, 2024 07:01 PM

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A plant operation has fixed costs of $2,000,000 peryear, and its output capacity is 100,000 electrical appliances

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