What volume per month is required to break even

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Reference no: EM132302354

A producer of chairs 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 $25000 per month and a variable costs of $2.50 per unit produced. Each item is sold to the retailers at a price that averages $3.10 per unit.

What volume per month is required to break even?

What profit would be realized on a monthly volume of 35000 units?

What volume is needed to obtain a profit of $18000 per month?

What volume is needed to provide a revenue of $43000 per month?

Reference no: EM132302354

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