Find volume per month in order to break even

Reference no: EM13118886

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 $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

a. What volume per month is required in order to break even?

b. What profit would be realized on a monthly volume of (1) 61,000 units? (2) 87,000 units?

c. What volume would be needed to obtain a profit of $16,000 per month?

Reference no: EM13118886

Questions Cloud

Compute probability problem quantitative methods : 55% of a restaurant's orders are from customers eating in the restaurant and 45% from the drive through window. 65% of the orders from the customers eating in the restaurant are from food and 35% from drinks. Solve Probability Problem Quantitative ..

Explain how close does the proton get to the line of charge : An infinitely long line of charge has a linear charge density of 5.00×10−12 C/m. A proton is at distance 19.0 cm from the line and is moving directly toward the line with speed 2000 m/s. Explain how close does the proton get to the line of charge?

Illustrate the factors involved in the milankovitch cycles : Briefly describe and use diagrams to illustrate the factors involved in the Milankovitch cycles and why current warming trends seem different from natural cycles. Also, comment on how this may affect organisms in Savannah and Tundra biomes.

Calculate the concentrations of fe3+ : At a certain temperature, K = 9.1 10-4 for the following reaction. FeSCN2+(aq) Fe3+(aq) + SCN -(aq)

Find volume per month in order to break even : Fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

Using present worth on incremental investment : For an interest rate of 12% and a lifetime of 10 years, which proposal should be selected and calculate your answer in three ways

Find out the time taken by the projectile to hit point : A projectile is shot from the edge of a cliff 140 m above ground level with an initial speed of 100 m/s at an angle of 37 degrees with the horizontal. Find out the time taken by the projectile to hit point at ground level.

Manipulating an expression and solving equation : Very few situations in the real world fit a linear pattern or even a non-linear pattern perfectly. How can we tell if the algebraic model we are using fits the situation "good enough?"

Exchange between atmospheric and plant pools : Briefly discuss how global warming might affect carbon cycles in a polar and a temperate biome, especially with regard to exchange between atmospheric and plant pools, and sources and sinks.

User Account

All Pages