I am just playing with some numbers to see what if.
Lets say Norris earns a Gross Profit of $125.00 on each unit it sells.
(VoiceLink/Flashback). To cover the overhead of $400,000, the company needs to sell 3200 units a month. Company indicated that that max production is 10,000 units. I am guessing that is 10,000 of each. They said 20,000 in combination and it will take 3 shifts to reach that number. Using 21 work days in a 30 day month means each shift has to product 317 items (VoiceLink/Flashback). 10,000 units @ $125.00 = $1,250,000 - $400,000 (overhead) = $850,000 Profit. That is the best the company can do when at full production. I do not believe the above to be realistic in the near future tho, if ever.
A more realistic number I believe is 5250 units a month if the units sell. 5250 unit a month @ $125.00 each = $656,250 - $400,000 = $256,250 some type of profit a month. This does not take into account any other type of revenues the company may generate.
Burt, the numbers I gave you are wrong. It was figured at $125.00 for each item instead of a Unit.
Any one else want to play with some numbers too? We can dream can't we (VBG).
Have Fun.
Jim
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