OPSCM multipart question
Question Description
I’m working on a supply chain multi-part question and need an explanation and answer to help me learn.
3. 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 $9,200 per month and vari-able costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. a. What volume per month is required in order to break even?b. What profit would be realized on a monthly volume of 61,000 units? 87,000 units? c. What volume is needed to obtain a profit of $16,000 per month?d. What volume is needed to provide a revenue of $23,000 per month? e. Plot the total cost and total revenue lines”
a. What is the monthly breakeven in units if the price is $.90 each? In revenue?
b. What price must be charged to earn a monthly profit of $5,000 if the forecast is for 100,000 units per month?
c. What volume is needed at a price of $.90 to earn a monthly profit of $5,000?
d. What volume is needed at a price of $.90 to obtain a monthly profit of $.10 per unit?
e. What volume is needed at a price of $.90 to obtain a monthly revenue of $20,000?
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