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a. What volume per month is required in order to break even?       b. What profit would be realized on a monthly volume of 65,000 units? 85,000 units?       c. What volume is needed to obtain a profit of $13,000 per month?

a. What volume per month is required in order to break even?       b. What profit would be realized on a monthly volume of 65,000 units? 85,000 units?       c. What volume is needed to obtain a profit of $13,000 per month?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 costs of $7,900 per month and variable cost of 62 cents per unit produced. Each item is sold to retailers at a price that averages 85 cents. (Round all answers to a whole number.)

 

a. What volume per month is required in order to break even?

 

 

 

b. What profit would be realized on a monthly volume of 65,000 units? 85,000 units?

 

 

 

c. What volume is needed to obtain a profit of $13,000 per month?

 

 

 

d. What volume is needed to provide a revenue of $20,000 per month?

 

 
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 costs of $7,900 per month and variable cost of 62 cents per unit produced. Each Item is sold to retailers at a price that averages 85 cents. (Round all answers to a whole number.) a. What volume per month is required in order to break even? Volume per month b. What profit would be realized on a monthly volume of 65,000 units? 85,000 units? c. What volume is needed to obtain a profit of $13,000 per month? Volume profits at volume of 65,000 profits at volume of 85,000 d. What volume is needed to provide a revenue of $20,000 per month? Volume
Transcribed Image Text: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 costs of $7,900 per month and variable cost of 62 cents per unit produced. Each Item is sold to retailers at a price that averages 85 cents. (Round all answers to a whole number.) a. What volume per month is required in order to break even? Volume per month b. What profit would be realized on a monthly volume of 65,000 units? 85,000 units? c. What volume is needed to obtain a profit of $13,000 per month? Volume profits at volume of 65,000 profits at volume of 85,000 d. What volume is needed to provide a revenue of $20,000 per month? Volume
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