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A manufacturing process has a fixed cost of $300,000 per month. Each unit of product being...

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General Management

A manufacturing process has a fixed cost of $300,000 per month.Each unit of product being produced contains $160 worth of materialand $220 in labor. Each finished product will sell for $450.

How many units must be sold each month to break even?

What level of monthly revenue is necessary to break even?

What is the expected profit for sales levels of 1,000, 2,500,and 5,000 units respectively.

Answer & Explanation Solved by verified expert
3.8 Ratings (626 Votes)
Variable cost per unit Material cost Labor cost 160 220 380 per unit Contribution per unit Selling price per unit Variable costs per unit 450 380 70 per unit    See Answer
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