Finding annual break-even volume

Reference no: EM1320580

Q1) Rolling Creek Textile Mill produces denim. Fixed monthly cost is= $21,000, and variable cost per yard of denim is $0.45. Mill sells a yard of denim for $1.30.

If maximum operating capacity of Rolling Creek Textile Mill described is= 25,000 yards of denim per month, find out break-even volume as a percentage of capacity.

a) For monthly volume of 18,000 yards of denim, find out the total cost, total revenue, and profit.

b) Find out annual break-even volume for the Rolling Creek Textile Mill.

Reference no: EM1320580

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