question archive A firm is thinking to extend its business by starting its work in a new plant
A firm is thinking to extend its business by starting its work in a new plant
Subject:ManagementPrice: Bought3
A firm is thinking to extend its business by starting its work in a new plant. The primary location being considered will have fixed costs of TK.1,500 per month and variable costs of Tk. $2 per unit produced. Each item is sold to retailers at a price that averages Tk. $130.
a)What volume per month is required in order to break even?
b)What would be realized on a monthly volume of 60,000 units? What profit would be realized on a monthly volume of 80,000 units?
c)What volume is needed to obtain a profit of $2000 per month?
