Question: Juan purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $6,000 per month, he needs
Juan purchased a new printing machine and started a small printing shop. As per his calculations, to earn revenue of $6,000 per month, he needs to sell printouts of 26,000 sheets per month. The printing machine has a capacity of printing 35,900 sheets per month, the variable costs are $0.01 per sheet, and the fixed costs are $2,500 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $380 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. % Round to two decimal places
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