Question: having trouble figuring out prob. #4 Ch.5: Strategic Capacity Planning Given the following data for a capacity planning alternative: Fixed costs: Variable cost: Revenue: $5000.00

having trouble figuring out prob. #4 Ch.5:having trouble figuring out prob. #4
Ch.5: Strategic Capacity Planning Given the following data for a capacity planning alternative: Fixed costs: Variable cost: Revenue: $5000.00 $1.00 per unit $1.20 per unit Design capacity: Effective capacity: Anticipated output: 4500 units per year 4000 units per year 3600 units per year 1. What is the break-even quantity (produced and sold)? [25,000 units] 2. What are total revenues for the break-even quantity? [$30,000) 1.20 * 25,000 3. What are total costs for the break-even quantity? [$30,000] bregkeren = total Foalet price per unit -Variable cost per unit (vhits) 5000 / (1.20 - 1) = 25,000 4. What quantity would be required for a profit of $2000? [35,000 units]

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