A manufacturer is considering adding a new facility to keep up with demand. The location being considered will have fixed cost of $15000.00 per month and variable costs of $15.00 per unit. The selling price will be $25.00 per unit. Show all work.
A.) What is the volume of units required per month to break even?
B.) What profit would be earned on 5000 units?
C.) What volume is required to obtain a profit of $10000.00 per month?