2. The Ylaya Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is P0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for the Ylaya Textile Mill. ANSWER 4 4. If the maximum operating capacity of the Ylaya Textile Mill described in Problem 2 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.

2. The Ylaya Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is P0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for the Ylaya Textile Mill. ANSWER 4 4. If the maximum operating capacity of the Ylaya Textile Mill described in Problem 2 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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