A manufacturing process has a fixed cost of $300,000 per month. Each unit of product being produced contains $160 worth of material and $220 in labor. Each finished product will sell for $450.
How many units must be sold each month to break even?
What level of monthly revenue is necessary to break even?
What is the expected profit for sales levels of 1,000, 2,500, and 5,000 units respectively.