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Student workpoint 3.8 Be a thinker XYZ Ltd has the capacity to produce 180,000 units of its key product per month. The fixed costs amount to $600,000 per month, while the variable costs are $15 per unit. The selling price for each product is $20. 1. Calculate the: a) monthly profits at maximum capacity b) break-even quantity c) break-even revenue. 2. The company has a profit target of $250,000 per month. Calculate the: a) output level needed to reach the target profit b) price it will need to charge to achieve the profit target at a capacity of 150,000 units.
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