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Acme Company purchases raw material x ( R M x ) at a cost of $ 8 . 4 0 per gallon. Acme can resell
Acme Company purchases raw material at a cost of $ per gallon. Acme can resell RMX as is for $ per gallon or it can further process to make Product It takes gallons of RMX to make one unit of Product which Acme can sell for $ per unit. In addition to the cost of RMX Acme incurs $ of additional variable costs to make and sell one unit of Product The monthly traceable fixed costs related to Product include $ of salaries paid to Product Z production and sales managers, as well as $ of depreciation expense on specialized manufacturing equipment. The specialized equipment has no resale value. How many units of Product does Acme need to sell each month to breakeven on processing RMX into Product as opposed to merely reselling RMX without further processing?
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