Home-Style Cookies wants to evaluate the potential profitability of the new retail shop. Fixed costs of $9,200 per month include payroll and equipment/furniture capital expense (rent and utilities are covered by the production plant), and average variable costs (includes packaging) of 70 cents per unit sold. Each item is sold to customers at a price that averages $2. For costing purposes, the multi-packs are counted as individual cookies. What volume per month is required in order to break even? What profit (or loss) would be realized on the forecasted monthly volume for August of 8,778 cookies (units) and for September at 10,540 cookies (units)? What volume is needed to obtain a profit of $16,000 per month & What volume is needed to provide a revenue of $23,000 per month? Plot the total cost and total revenue lines on a graph Please show all steps to prepare the graph. Thank you.
Home-Style Cookies wants to evaluate the potential profitability of the new retail shop. Fixed costs of $9,200 per month include payroll and equipment/furniture capital expense (rent and utilities are covered by the production plant), and
What volume per month is required in order to break even?
What profit (or loss) would be realized on the
What volume is needed to obtain a profit of $16,000 per month & What volume is needed to provide a revenue of $23,000 per month?
Plot the total cost and total revenue lines on a graph
Please show all steps to prepare the graph. Thank you.
Breakeven = Fixed cost / (selling price per unit - Variable cost per unit)
Revennue = Units sold X (selling price per unit - Variable cost per unit)
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