Question
Reflex Manufacturing Corp. manufactures composters at a unit variable cost of $62. It sells them for $87 each. It can produce a maximum of 4,400
Reflex Manufacturing Corp. manufactures composters at a unit variable cost of $62. It sells them for $87 each. It can produce a maximum of 4,400 composters per month. Annual fixed costs total $828,000.
a. What is the break-even volume per month? Break-even volume composters/month
b. What is the monthly net income at a volume of 4,200 units per month? (Input the amount as a positive value.) (Click to select) $ per month
c. What is the monthly net income if Reflex operates at 50% of capacity during a recession? (Input the amount as a positive value.) (Click to select) $ per month
d. At what percent utilization would the annual net income be $276,000? (Round your answer to 1 decimal place.) Percentage of capacity %
e. If fixed and variable costs remain the same, how much do the monthly break-even unit sales change for a $5 increase in the selling price? The break-even volume (Click to select) by composters/month.
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