South Drink Company produces a variety of specialty beverages. One of its products is made in a
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South Drink Company produces a variety of specialty beverages. One of its products is made in a separate facility for which monthly equipment leasing and heating costs are $52,000. Eight workers handle production and shipping. Each receives salary and fringe benefits of $2,500 per month. The advertising is charged at $54,708 per year. The product is sold for $5.00 a case. Packaging and distribution costs are $0.30 per case, and ingredients cost $1.50 per case. The company wants to determine how many units should be produced to ensure a profit per month. What is the break-even volume? Round to two decimal places.
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
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