What volume per month is required in order to break even

Assignment Help Operation Management
Reference no: EM131742600

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 cost of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

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

What profit would be realized on a monthly volume of 61,000 units? 87,000 units?

What volume is needed to obtain a profit of 16,000 per month?

Plot the break-even chart showing fixed cost, variable cost, total cost, total revenue lines, and the break-even point. Use Excel to plot the break-even chart.

Reference no: EM131742600

Questions Cloud

Reflect the steps of the research process : Discuss the major differences and challenges of conducting international marketing research as it relates to problem definition, sampling, collecting secondary.
Discuss the new product development process : Discuss the new product development process.Discuss your new product launch strategy.
What is the expected value of the option : Stock market. A day trader buys an option on a stock that will return $100 profit if the stock goes up today and loses $200 if it goes down.
Training and development : Suppose you are the owner of a restaurant in your local neighborhood. Outline a high-level training plan for your restaurant for both the front and back.
What volume per month is required in order to break even : What volume per month is required in order to break even? What volume is needed to obtain a profit of 16,000 per month?
Discuss what happens in houses away from plain view : What happens in houses away from plain view, what insider facts-" Secrets appear to be a topic in the novel
Article mentions to counteract habitual thinking : What are some ways the article mentions to counteract “habitual thinking”?
Draw a card from a deck : Pick a card, any card. You draw a card from a deck. If you get a red card, you win nothing. If you get a spade, you win $5.
Define conceivable impacts of expelling rivalry from games : What might be the conceivable impacts of expelling rivalry from games, business, and training. Shouldn't something be said about this theme

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd