Question: I need help with a problem e only, but the rest is finished. 3. A producer of pottery is considering the addition of a new


I need help with a problem "e" only, but the rest is finished.
3. A producer of pottery is considering the addition of a new plant Page 218 to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. a. What volume per month is required in order to break even? b. What profit would be realized on a monthly volume of 61,000 units? 87,000 units? c. What volume is needed to obtain a profit of $16,000 per month? d. What volume is needed to provide a revenue of $23,000 per month? e. Plot the total cost and total revenue lines. Question 5-3. a. b. C. d. Fixed Cost Variable Cost Revenue Break-even quantity Profit of 61,000 units Profit of 87,000 units Quantity Quantity 9200 per month ($) 0.7 cents per unit 0.9 cents per unit 46000 units $3,000 $8,200 126000 units 25556 unitsStep by Step Solution
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