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Sandira Industries is a producer of devices used in the jet industry. Normal production level is 60 pics per month, but due to improved economic conditions in China, production is at 72 per month. The following information is available. Fixed costs = $2.4 million per month Variable cost per unit =$35,000 Revenue per unit = $75,000 (a) Determine the breakeven number of units (b) What is the current profit level per month for the facility? (at Q=72 units per month) (c) What is the difference between the revenue and variable cost per piece that is necessary to break even at a significantly reduced monthly production level of 45 units, if fixed costs remain constant?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92078755

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