Question
Jhonny purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,000 per month, she needs
Jhonny purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,000 per month, she needs to sell printouts of 21,000 sheets per month. The printing machine has a capacity of printing 36,300 sheets per month, the variable costs are $0.02 per sheet, and the fixed costs are $1,600 per month.
a. Calculate the selling price of each printout. Round to the nearest cent
b. If they reduce fixed costs by $350 per month, calculate the new break-even volume per month. Round up to the next whole number
c. Calculate the new break-even volume as a percent of capacity. Round to two decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started