Explore BrainMass

Explore BrainMass

    Calculate costs and break even

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000 and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30.

    a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit.
    b. Determine the annual break-even volume for the Rolling Creek Textile Mill.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:57 pm ad1c9bdddf

    Solution Preview

    (a) Total cost = Fixed cost + Variable cost = 21000 + 0.45 * 18000 = $29100

    Total revenue ...

    Solution Summary

    A Complete, Neat and Step-by-step Solution is provided.