Question: A pottery maker is considering adding a new plant for additional capacity. The proposed facility will have fixed costs of $8500 per month and variable
A pottery maker is considering adding a new plant for additional capacity. The proposed facility will have fixed costs of $8500 per month and variable costs of $0.72 per unit produced. Each piece of pottery is sold to retailers at a price that averages $1.09.
What monthly volume is needed to break even?
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