A producer of chairs 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 costs of $20000 per month and a variable costs of $1.80 per unit produced. Each item is sold to the retailers at a price that averages $2.40 per unit.
What volume per month is required to break even?
What profit would be realized on a monthly volume of 65000 units?
What volume is needed to obtain a profit of $15000 per month?
What volume is needed to provide a revenue of $23000 per month
