Question: Given the following data for a capacity planning alternative: Fixed Costs: $15,000 Variable Costs: $1 per unit Revenue: $1.6 per unit Design Capacity: 45,000 units

Given the following data for a capacity planning alternative:

Fixed Costs: $15,000

Variable Costs: $1 per unit

Revenue: $1.6 per unit

Design Capacity: 45,000 units per year

Effective Capacity: 40,000 units per year

Anticipated Output: 36,000 units per year

a. what is the break-even quantity ?

b. what quantity would be required for a profit of $2000 ?

c. what is the anticipated utilization ? efficiency ?

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