Addition of new plant to absorb the backlog of demand

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A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $10,400 per month and variable costs of $0.73 per unit produced. Each item is sold to retailers at a price that averages $0.92 a) The volume per month is required in order to break even = (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units = c) The volume is needed to obtain a profit of $16,000 per month = (in whole number) d) The volume is needed to provide revenue of $23,000 per month = (in whole number)

Reference no: EM13967061

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