Farmers Choice’ produces animal feed. The fixed monthly cost of production is $700000 and the variable cost per bag of feed is $1200. Each bag of feed sells for $2500. (a)       For a monthly volume of 700 bags, determine the total cost, total revenue and profit                                                                                                                       (b)       Determine the monthly break-even volume for ‘Farmers Choice’ animal feeds.                                                                                                                                (c)       If ‘Farmer’s Choice’ increases its price per bag of animal feed from 2500 to 2700 what is the new break-even volume.

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