Considering the addition of a new plant to absorb backlog

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Reference no: EM13901931

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 $15,400 per month and variable costs of $0.98 per unit produced. Each item is sold to retailers at a price that averages $1.23

a) The volume per month is required in order to break even = Blank 1 (in whole number)

b) The profit or loss would be realized on a monthly volume of 61,000 units = Blank 2

c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number)

d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)

Reference no: EM13901931

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