A plastic cup manufacturer is considering adding a new plant to keep up with growth in demand. The location being considered will have fixed costs of $15, 200 per month and variable costs of $10 per box of 1000 cups produced. Cups are sold for a price of $15 per box of 1,000.
What volume of cups is required per month to break even?
What profit would be earned on $6,000 boxes?
What volume is required to obtain a profit of $10,000 per month?
Plot the total cost and total revenue lines.