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Ignoring utility costs altogether, if instead of breaking even, the firm wants to make $ 10,000/month profit, answer the following: How many units must be

  • Ignoring utility costs altogether, if instead of breaking even, the firm wants to make $10,000/month profit, answer the following:
  • How many units must be sold each month?
  • To how many sales dollars is this unit volume equivalent?
  • In year 2, the CEO plans to add $300,000/yr. expenses in added administrative salaried headcount. Ignoring utility costs altogether, how many additional units must be sold just to pay for this added expense?

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