What volume per month is required to break even

Assignment Help Operation Management
Reference no: EM131921926

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 costs of 70 cents per unit produced.

Each item is sold to retailers at a price that averages 90 cents. Explain and please provide the excel formulas.

a) What volume per month is required to break even?

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

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

d) What volume is needed to provide a revenue of $23,000 per month?

e) Plot the total cost and total revenue lines.

Reference no: EM131921926

Questions Cloud

Discuss the kinds of advertising actually needed : Discuss the relation of advertising objectives to marketing strategy planning and the kinds of advertising actually needed. Illustrate.
Study of helicopter usage and patient? survival : In a study of helicopter usage and patient? survival, among the 56,696
Explain what factors are important to ongoing team dynamics : Explain what factors are important to ongoing team dynamics? Describe guidelines to evaluate the function and productivity of teams.
Estimate the true proportion of parents : Estimate the true proportion of parents who believe in raising the driving age with 90% confidence.
What volume per month is required to break even : What volume per month is required to break even? What profit would be realized on a monthly volume of 61,000 units? 87,000 units?
What objectives does each of the given ads have : Give three examples where advertising to middlemen might be necessary. What are the objective(s) of such advertising?
Estimate the true population mean size : The number of students who belong to the dance company at each of several randomly selected small universities is shown here.
What is the increase in inventory : f the throughput time is reduced to 4 hours without changing the cycle time, what is the increase in inventory ?
Discuss the use of testimonials in advertising : Discuss the use of testimonials in advertising. Which of the four AIDA steps might testimonials accomplish? Are they suitable for all types of products?

Reviews

Write a Review

Operation Management Questions & Answers

  Determine project viability through capital budgeting

Analyze the revenue items based on information collected and make adjustments as suggested by your instructor.

  Develop policies for preventing workplace violence

ABC Manufacturing employs a man who frequently exhibits aggressive behavior towards both co-workers and customers. Manager at ABC realize that the employee has a potential for vioience, yet they continue to keep him on the payroll. Ryan, an HR manage..

  Reflecting on general education

What are the principles guiding general education? What are the most important concepts learned from general education? And how can the knowledge and skills learned shape your personal and professional development?

  Why is this strategy risky

A Mexican firm decides to issue Yankee bonds in the U.S. The bonds are denominated in U.S. dollars, but the Mexican firm will need to convert Mexican Pesos into Dollars at each coupon date in order to pay the required interest on the bonds. The bonds..

  Assessments are required for all types of training

Do you think needs assessments are required for all types of training?

  What are blue oceans

What are Blue Oceans? Begin to read Blue Oceans Strategy

  Calculate the incremental net operating income

Assume that Cane expects to produce and sell 104,000 Alphas during the current year. One of Cane's sales representatives has found a new customer.

  Before rule promulgated by federal agency becomes law

Before a rule promulgated by a federal agency becomes law, it must be. The court's standard of review will give the greatest deference to any agency's decision when the plaintiff.

  Understanding of the purpose of bargaining

Bargaining has resulted in many rights and benefits for all employees within the workplace. Describe your understanding of the purpose of bargaining. Conduct some additional research, and review a case study that includes union bargaining (be sure to..

  Evaluate definition-theories and models of corporate culture

Evaluate definitions, theories, and models of corporate culture. Identify the roles and relationships corporate culture has in organizational performance.

  Describe how technology is changing the customer service

Describe how technology is changing the customer service and service offerings.

  What human resource component within operating environment

What Human Resource component within its operating environment is a major element of a firm's ability to satisfy its personnel needs

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