An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost (without profit). The remaining 60% of the business is with several different customers and they are charged $40 per unit. Find.
a. The break even volume for this job.
b. The unit cost if 100,000 units are made per year.
c. The annual profit for this quantity (100,000 units)