A manufacturer is considering adding a new facility to keep up with demand. The location being considered will have fixed costs of $15,000/ month and variable costs of $15/ unit. The selling price will be $25/ unit.
A) What is the volume of units required per month to break even?
B) What profit would be earned on 5,000 units?
C) What volume is required to obtain a profit of $10,000/ month?