Problem $5-3($Static$)$

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed cdsts 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?

Volume per month

units

b$-1.$ What profit would be realized on a monthly volume of $61,000$ units?

Profit

b$-2.$ What profit would be realized on a monthly volume of $87,000$ units?