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What is break-even volume and break-even revenue per month

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Question - Harold decides to quit his job in retail and accepts a position as manager of a computer manufacturing company.

The company has a capacity to produce 750 monitors per month and is currently producing 525 monitors every month and selling it to a wholesaler.

The company's expenses are:

1. Fixed: rent of $4,000/ month, salaries of $12,500/ month, insurance of $1,500 per month

2. Variable: material at $6 /monitor, labour of $35/ monitor and sales commissions of $19 /monitor.

If each monitor sells for $105, what is the break-even volume and break-even revenue per month?

Reference no: EM132589462

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