the monthly sales volume needed to break even. (b) NPWRC president is negotiating for a sole-source contract with a municipal government where several sites will dispense larger amounts. The fixed cost and purification costs will be the same, but the sales price per gallon will be Php300 for the first 5,000 gallons per month and Php200 for all above this threshold level. Determine the monthly breakeven volume at each site.
CDE Company dispenses its product Nature’s Spring Water via vending machines with most current locations at food markets and pharmacy stores. The average monthly fixed cost per site is Php9,000, while each gallon costs Php180 to purify and sells for Php300. (a) Determine the monthly sales volume needed to break even. (b) NPWRC president is negotiating for a sole-source contract with a municipal government where several sites will dispense larger amounts. The fixed cost and purification costs will be the same, but the sales price per gallon will be Php300 for the first 5,000 gallons per month and Php200 for all above this threshold level. Determine the monthly breakeven volume at each site.
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