7. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000 and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company. If the maximum operating capacity of Evergreen Fertilizer Company described in Problem 2 is120,000 pounds of fertilizer per month, determine the break-even volume as a percentage of capacity. • If Evergreen Fertilizer Company in Problem 2 changes the price of its fertilizer from $0.40 per pound to $0.60 per pound, what effect will the change have on the break-even volume?

7. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000 and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company. If the maximum operating capacity of Evergreen Fertilizer Company described in Problem 2 is120,000 pounds of fertilizer per month, determine the break-even volume as a percentage of capacity. • If Evergreen Fertilizer Company in Problem 2 changes the price of its fertilizer from $0.40 per pound to $0.60 per pound, what effect will the change have on the break-even volume?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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