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The 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.
b. Determine the annual break-even volume for the Rolling Creek Textile Mill.
c. If the maximum operating capacity of the Rolling Creek Textile Mill is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.
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