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Q 2 . Armena Manufacturing Corp. manufacturers composters. It estimates that material costs are $ 4 3 per composter. Armena sells its composters for $

Q2. Armena Manufacturing Corp. manufacturers composters. It estimates that material costs are $43 per composter. Armena sells its composters for $70 each and it can produce a maximum of 3200 composters per month. Lease and overhead expenses are $54,000 per month.
a) What is the break-even volume per month?
b) What is the monthly net income at a volume of 2500 composters per month, 2800 composter per month?
c) What is the monthly net income if Armena operates at 50% of capacity during a pandemic?

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