Fixed Costs: $14,000 per year
Variable Costs: $1.00 per unit
Revenue: $1.55 per unit
Design Capacity: 43,000 units per year
Effective Capacity: 40,000 units per year
Anticipated Output: 34,000 units per year
a. What is the break-even quantity (produced and sold)?
b. What are total revenues for the break-even quantity?
c. What are total costs for the break-even quantity?
d. What quantity would be required for a profit of $2,000?
e. What profit (loss) would there be for a quantity of 27,000?
f. What profit (loss) would there be for a quantity of 10,000?
g. What is the anticipated utilization?
h. What is the anticipated efficiency?