Cost-volume-profit relationships Spotless, Inc., sells only one product.

The sales price per unit is $50, with variable cost per unit of $40.

Fixed costs are $60,000 per month. Maximum capacity is 34,000 units per month.

Answer the following questions:

(a) To break-even, how many units must Spotless sell per month? _______ units

(b) If Spotless, Inc., sold 25,000 units, what would be its operating income for the month? $________

(c) At present capacity, what is the maximum operating income Spotless can expect to earn per month? $________