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Juan purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $4,500 per month, she needs
Juan purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $4,500 per month, she needs to sell printouts of 25,000 sheets per month. The printing machine has a capacity of printing 36,700 sheets per month, the variable costs are $0.02 per sheet, and the fixed costs are $1,900 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $360 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
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