Question: Lufkin Trailer Corporation assembles up to 30 trailers per month for 18-wheel trucks in its east cost facility. The following information is available:
Fixed Costs FC = $750,000 per month
Variable Cost per Unit: v = $35,000
Revenue per Unit: r = S75.000
Find: a. What is the break even quantity of trailers for the company to produce
i. per month to recover its costs? Per year? Solve this problem by hand
b. What would the profit/loss be for the company given the production of 30 trailers in a month? Solve this problem by hand
c. Create a breakeven chart. The chart must contain:
- Title
- Axis Labels
- Appropriate units on axis
- Total Revenue line - labeled and include equation
- Total Cost Line - labeled and include equation
- Breakeven point - labeled and include the value of the breakeven point.