South Drink Company produces a variety of specialty beverages. One of its products is made in a separate facility for which monthly equipment leasing and heating costs are $60,000. Eight workers handle production and shipping. Each receives salary and fringe benefits of $2,500 per month. The advertising is charged at $54,708 per year. The product is sold for $7.00 a case. Packaging and distribution costs are $0.30 per case, and ingredients cost $1.50 per case. The company wants to determine how many units should be produced to ensure a profit per month. What is the break-even volume? Round to two decimal places. O
a. 6261.35 b. 19410.18 c. 20133.10 d. 22,271.71
