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A local manufacturer of Barbadian-branded pens has chosen a site for her business which will have fixed costs of $9,200 per month and variable costs of $2 per unit produced. Each item is sold to retailers at a price that averages $2.20.
a. What volume per month is required in order to break even?
b. What profit would be realised on a monthly volume of 87,000 units?
c. What volume is needed to reach a profit target of $16,000 per month?
Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes. Please hold them for me." If the shopkeeper signs a note that says, “Will hold for Rebecca silv..
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