Please answer #9

3The Rolling Creek Textile Mill produces denim.The fixed monthly cost is $21,000 and the variable cost per yard of denim is $0.45.The mill sells a yard of denim for $1.30

a For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue and profit

A5 x 18,000 + 21,000 for total cost of 29,100

Revenue: 1.30 x 18,000 = 23,400

Total profit: 23,400 29,100 = -5,700 loss NOT profit for the 18,000 yards

bDetermine the monthly (NOTE ERROR IN BOOK ITS STATES ANNUAL) break-even volume for the Rolling Creek Textile Mill.

V=1.2%

9.If the maximum operating capacity of the Rolling Creek Textile Mill described in problem 3 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.(HINT:Break-even volume as percentage of capacity = v/k).