Sala pipe fittings produce pipe elbows and reducers from stainless steel. Thecompany can process up to 20923 tonnes of stainless steel sheets in a year. Thecompany pays the steel company $1318 per tonne of stainless steel sheets and eachtonne is used to manufacture $3906 worth of elbows and reducers. Variableprocessing costs are $438 per tonne and fixed processing costs $4 million per year atall production levels. Administrative overhead is $2 million per year regardless ofthe volume of the production. Marketing and transportation costs work out to be$393 per tonne. Determine the break-even volume in terms of percent capacityutilization.Answer to two decimals without a % sign. Ex, 14.25% is entered as 14.25Hint: The fixed costs need to be mulitplied by 1,000,000Answer:?

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Sala pipe fittings produce pipe elbows…

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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