Page 192 - Stevenson, Chapter 5, Strategic Capacity Planning
VC = $.70/unit. Price (Revenue) = $.90/unit. determine the volume/month required to breakeven. QBEP = FC . R – VC = $ 9,200 .90 -.70 = $9,200 .20 = 46,000 pieces of pottery per month. What if the property being considered has a maximum capacity of 40,000 pieces of pottery/month. What is your recommendation? ................
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