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 consideredwill 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 $2.07a) 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 2c) 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)

Fixed Cost = $11,152 per monthVariable Cost = $1.23 per unitSelling price = $2.07 per unit

Answered: A producer of pottery is considering…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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