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A firm is thinking to extend its business by starting its work in a new plant. The primary location being considered will have fixed costs of TK.1,500 per month and variable costs of Tk. $2 per unit produced.
Each item is sold to retailers at a price that averages Tk. $130.
a. What volume per month is required in order to break even?
b. What would be realized on a monthly volume of 60,000 units? What profit would be realized on a monthly volume of 80,000 units?
c. What volume is needed to obtain a profit of $2000 per month?
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