Question
Gerry decides to quit his job in retail and accepts a position as a manager of a computer manufacturing company. The company has a capacity
Gerry decides to quit his job in retail and accepts a position as a manager of a computer manufacturing company. The company has a capacity to produce 900 monitors per month and is currently producing 700 monitors every month and selling it to a wholesaler.
The company\'s expenses are:
Fixed: rent $4500/monitor, labour $40/monitor and sales commissions of $14/monitor
If each monitor sells for $180, what is the break-even volume and break-even revenue per month?
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Answers BreakEven Volume 36 monitors BreakEven Revenue 6 42857 Workings Fixed costs 4 ...Get Instant Access to Expert-Tailored Solutions
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