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A producer of pottery 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 $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units - Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)

A producer of pottery 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 $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units - Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A producer of pottery 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 $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)
Transcribed Image Text:A producer of pottery 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 $11,152 per month and variable costs of $1.23 per unit produced. Each item is sold to retailers at a price that averages $2.07 a) The volume per month is required in order to break even = Blank 1 (in whole number) b) The profit or loss would be realized on a monthly volume of 61,000 units Blank 2 c) The volume is needed to obtain a profit of $16,000 per month = Blank 3 (in whole number) d) The volume is needed to provide revenue of $23,000 per month = Blank 4 (in whole number)
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