# Question

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.

a. What volume per month is required in order 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.

a. What volume per month is required in order 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.

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