Question

A manufacturing process has a fixed cost of $250,000 per month. Each unit of product being...

A manufacturing process has a fixed cost of $250,000 per month. Each unit of product being produced contains $17 worth of material and $42 in labor. Each finished product will sell for $100.

  1. How many units must be sold each month to break even?
  2. What level of monthly revenue is necessary to break even?
  3. What is the expected profit for sales levels of 2,500, 7,500, and 10,000 units respectively?

Homework Answers

Answer #1

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