A manufacturing process has a fixed cost of $250,000 per month. Each unit of product being produced contains $15 worth of material and $35 in labor. Each finished product will sell for $100.
A How many units must be sold each month to break even?
B What level of monthly revenue is necessary to break even?
C What is the expected profit for sales levels of 2,500, 7,500, and 10,000 units respectively.