Question
Harold decides to quit his job in retail and accepts a position as manager of a computer manufacturing company. The company has a capacity to
Harold decides to quit his job in retail and accepts a position as manager of a computer manufacturing company.
The company has a capacity to produce 750 monitors per month and is currently producing 525 monitors every month and selling it to a wholesaler.
The company's expenses are:
1.Fixed:rent of $4,000/ month, salaries of $12,500/ month, insurance of $1,500 per month
2.Variable:material at $6 /monitor, labour of $35/ monitor and sales commissions of $19 /monitor.
If each monitor sells for $105, what is thebreak-even volumeandbreak-even revenueper month?
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