Price, Costs and Target Volume
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What needs to be calculated first in order to get the company's new target volume in units?
CRT provides printing services. It has a fixed cost of $511 . The company sells only one product- a batch of specialized forms for $ 29.61 and its variable costs are $8.01 per batch. The company's printing facility emits a considerable amount of ink stained water and CRT decided that the socially responsible course was to install a new filter increasing fixed costs by $300.
If the profit objective of $700 remains the same and the selling price and variable costs remain unchanged , what must be the company's new target volume in units?
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Solution Summary
Price, costs and target volume are investigated.
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The fixed cost including the new filter is
FC = 511 + 300 = 811 dollars
The variable cost is
VC = 8.01x, ...
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