Question
In: Operations Management
A producer of pottery is considering the addition of a new plant to absorb the backlog...
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
$10,456 per month and variable costs of
$0.79 per unit produced. Each item is sold to
retailers at a price that averages $0.92
a) The volume per month is required in order to break even
= (in whole number)
b) The profit or loss would be realized on a monthly volume of
61,000 units =
c) The volume is needed to obtain a profit of $16,000 per month
= (in whole number)
d) The volume is needed to provide revenue of $23,000 per month
= (in whole number)
Solutions
keosha answered 1 year agoRelated Solutions
A producer of pottery is considering the addition of a new plant to absorb the backlog...
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 the following cost structures
as shown in the table. The producer knows there is a big order or
order contract that will be awarded by the giant retail WalWal. The
producer is not certain as what capacity production is to produce.
It all depends on WalWal’s contract. The producer has also been...
A producer of pottery is considering the addition of a new plant to absorb the backlog...
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
$13,450 per month and variable costs of
$1.06 per unit produced. Each item is sold to
retailers at a price that averages $1.23
a) The volume per month is required in order to break even
= (in whole number)
b) The profit or loss would be realized on a monthly...
A producer of pottery is considering the addition of a new plant to absorb the backlog...
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 the following cost structures
as shown in the table. The producer knows there is a big order or
order contract that will be awarded by the giant retail WalWal. The
producer is not certain as what capacity production is to produce.
It all depends on WalWal’s contract. The producer has also been...
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