A well-known firm produces automobiles

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Reference no: EM132220866

A well-known firm produces automobiles. The planning team needs to decide how many items to produce monthly. The monthly fixed cost is $42,000 and variable costs are $3 per charger. Items sell for $7 each.

a. Draw a table showing fixed costs, variable costs, total costs, total revenues, and total profits, for monthly volumes of 10,000, 12,000 and 15,000 units.

b. What is the break-even point?

c. Determine profit when volume equals 25,000 units.

Reference no: EM132220866

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