What volume per month is required in order to break even

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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?

Reference no: EM132817722

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