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Break even and profit
You received sn email from Carl the manager. They produce packaging for cell phones. The delivery price is based on a long term contracts
The price of the supply of cardboard has increased due to a .15 fuel surcharge added to the cost Carl has a fixed monthly cost of $257,000 and delivers 3.3 million packages in the same period for a price of $3.24 The variable cost of the previous package was $ 1.37. At what volume was the old break-even and what is the new break-even? In order to make the same profit how many more packages needs to be produced? |
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