A producer of electric motors is considering the addition of a new plant to absorb the...
A producer of electric motors 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 $1,156,235 per month and variable costs of $3,250 per unit produced. Each item is sold to retailers at a price that averages $5,750.
a. What volume per month is required in order to break even?
b.1. What profit would be realized on a monthly volume of 670 units?
b.2. What profit would be realized on a monthly volume of 987 units?
c. What volume is needed to obtain a profit of $250,000 per month?
d. What volume is needed to provide a revenue of $3,212,045 per month?
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