Reference no: EM132739098

Clean-Up, Inc., sells only one product. The sales price per unit is $60, with variable cost per unit of $50. Fixed costs are $70,000 per month. Maximum capacity is 44,000 units per month. Answer the following questions:

Problem (a) To break even, how many units must Clean-Up sell per month? _______________ units

Problem (b) If Clean-Up, Inc., sold 25,000 units, what would be its operating income for the month? $________________

Problem (c) At present capacity, what is the maximum operating income Clean-Up can expect to earn per month? $________________

Problem (d) Assuming that direct labor cost can be reduced by $2 per unit, what would Clean-Up's maximum operating income be per month?