## (Solved) Please answer #9 3.The Rolling Creek Textile Mill produces denim. The fixed monthly cost is \$21,000 and the variable cost per yard of denim is \$0....

3â€¦The Rolling Creek Textile Mill produces denim.Â The fixed monthly cost is \$21,000 and the variable cost per yard of denim is \$0.45.Â The mill sells a yard of denim for \$1.30

aâ€¦ For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue and profit

A5 x 18,000 + 21,000 for total cost of 29,100

Revenue: 1.30 x 18,000 = 23,400

Total profit: 23,400 â€“ 29,100 = -5,700 loss NOT profit for the 18,000 yards

bâ€¦Determine the monthly (NOTE ERROR IN BOOK â€“ ITS STATES ANNUAL) break-even volume for the Rolling Creek Textile Mill.

Â V=1.2%

9.Â Â If the maximum operating capacity of the Rolling Creek Textile Mill described in problem 3 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity.Â (HINT:Â Break-even volume as percentage of capacity = v/k).

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