Question: Reflex Manufacturing Corp. manufactures composters at a unit variable cost of $ 4 3 . It sells them for $ 7 3 each. It can
Reflex Manufacturing Corp. manufactures composters at a unit variable cost of $ It sells them for $ each. It can produce a
maximum of composters per month. Annual fixed costs total $
a What is the breakeven volume per month?
Breakeven volume
compostersmonth
b What is the monthly net income at a volume of units per month? Input the amount as a positive value.
Click to select$
per month
c What is the monthly net income if Reflex operates at of capacity during a recession? Input the amount as a positive value.
Click to select$
per month
d At what percent utilization would the annual net income be $Round your answer to decimal place.
Percentage of capacity
e If fixed and variable costs remain the same, how much do the monthly breakeven unit sales change for a $ increase in the selling
price?
The breakeven volume
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