The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue and profit. b. Determine the annual break-even volume for the Rolling Creek Textile Mill. c. If the maximum operating capacity of the Rolling Creek Textile Mill described in Problem 1 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.

The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue and profit. b. Determine the annual break-even volume for the Rolling Creek Textile Mill. c. If the maximum operating capacity of the Rolling Creek Textile Mill described in Problem 1 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.

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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