Reference no: EM132398560

Please show calculations

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 $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

a. What volume per month is required in order to break even?

Volume per month_________ units

b-1. What profit would be realized on a monthly volume of 61,000 units? (Omit the "$" sign in your response.)

Profit $________ 

b-2. What profit would be realized on a monthly volume of 87,000 units? (Omit the "$" sign in your response.)

Profit $_________ 

c. What volume is needed to obtain a profit of $16,000 per month?

Volume per month _____________units

d. What volume is needed to provide a revenue of $23,000 per month? (Round your answer to the nearest whole number.)

Volume per month_____________ units