Answer:
The Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly costis $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells thefertilizer for $0.40 per pound. Determine the monthly break-even volume for thecompany.Break Even Volume = Fixed cost / (Selling price per pound – Variable cost perpound)= 25000/(0.40-0.15)= 100,000 PoundsQuestion 12:If the Evergreen Fertilizer Company in problem 4 changes the price of its fertilizer from$0.40 per pound to $0.60 per pound, what effect will the change have on the break-evenvolume?Break Even Volume = Fixed cost / (Selling price per pound – Variable cost perpound)= 25000/(0.60-0.15)= 55,555.56 PoundsThe break even volume
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