Question: Emily purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,500 per month, she needs

Emily purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $5,500 per month, she needs to sell printouts of 22,000 sheets per month. The printing machine has a capacity of printing 36,800 sheets per month, the variable costs are $0.04 per sheet, and the fixed costs are $2,200 per month.

a. Calculate the selling price of each printout.

b. If they reduce fixed costs by $370 per month, calculate the new break-even volume per month.

c. Calculate the new break-even volume as a percent of capacity.

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