QUESTION

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 $17,162 per month and variable costs of $2.65 per unit produced. Each item is sold to retailers at a price that averages $2.68

a) The volume per month is required in order to break even = (in whole number)

b) The profit or loss would be realized on a monthly volume of 61,000 units =

c) The volume is needed to obtain a profit of $16,000 per month = (in whole number)

d) The volume is needed to provide revenue of $23,000 per month = (in whole number)