- #1
Victoriaa
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A manufacturing company is studying the feasibility of producing a new product. A new production line could manufacture up to 800 units per month at a cost of \$50 per unit. Fixed costs would be \$22,400 per month. Variable selling and shipping costs are estimated to be \$20 per unit. Market research indicates that a unit price of \$110 would be competitive.
a) What is the break-even point as a percent of capacity?
b) What would be the net income at 90% of capacity?
c) What would unit sales have to be to attain a net income of \$9000 per month?
d) In a serious recession sales might fall to 55% of capacity. What would be the
resulting net income?
e) What dollar amount of sales would result in a loss of \$2000 per month?
a) What is the break-even point as a percent of capacity?
b) What would be the net income at 90% of capacity?
c) What would unit sales have to be to attain a net income of \$9000 per month?
d) In a serious recession sales might fall to 55% of capacity. What would be the
resulting net income?
e) What dollar amount of sales would result in a loss of \$2000 per month?