Please do not give solution in image format thanku 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 $5,400 per month and variable cost of 47 cents per unit produced. Each item is sold to retailers at a price that averages 74 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 73,000 units? 92,000 units?   c. What volume is needed to obtain a profit of $11,000 per month?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
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Please do not give solution in image format thanku

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 $5,400 per month and variable cost of 47 cents per unit produced. Each item is sold to retailers at a price that averages 74 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 73,000 units? 92,000 units?

 

c. What volume is needed to obtain a profit of $11,000 per month?

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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing