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What volume per month is required in order to break even

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Problem - A producer of pottery is considering the addition ofa new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $5,400 per month and variable cost of 47 cents per unit produced. Each item is sold to retailers at a price that averages 74 cents.

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

b. What pro?t would be realized on a monthly volume of 73,000 units?

c. What volume is needed to obtain a profit of $11,000 per month?

Reference no: EM132995005

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