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Need urgent answers to all parts (A to E) 3. A producer of pottery is considering the addition of a new factory to absorb the
Need urgent answers to all parts (A to E)
3. A producer of pottery is considering the addition of a new factory to absorb the backlog of demand that now exists. The primary location being considered will have fixed cost of $9,200 per month and variable cost of $0.70 per unit produced. Each item is sold to retailers at a price that averages $0.90. LO3 a. What quantity per month is required in order to break even? b. What profit would be realized on a monthly quantity of 61,000 units? 87,000 units ? c. What quantity is needed to obtain a profit of $16,000 per month? d. What quantity is needed to provide revenue of $23,000 per month? e. Plot the total cost and total revenue lines against quantity per monthStep by Step Solution
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