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Armean manufacturing corp. manufacturers composters. It estimates that material cost are $43 per composters. Armenia sells its composters for $70 each and it can produce
Armean manufacturing corp. manufacturers composters. It estimates that material cost are $43 per composters. Armenia sells its composters for $70 each and it can produce a maximum of 3200 composters per month. Lease and overhead expenses are $648,000.
A. What is the break even volume per month?(2000 composters per month)
B. What is the monthly net income at a volume of 2500 composters per month? ($13,500/month)
C. What is the monthly net income if Armenia operates at 50% of capacity during a pandemic? ($10,800/month loss)
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