Question

A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed costs for the Buffs would be $7500 and the variable costs per egg would be a dime per egg. The Reds would have a fixed cost of $6000 and a variable cost of fifteen cents. At what level of egg production would the poultry farmer be indifferent between Rhode Island Reds and Buff Orpingtons

Answer 1

Answer:

30,000

Explanation:

$7500 + 0.1x = $6000 + 0.15x

collect like terms and solve for x

$7500 - $6000 = 0.05x

x = 30,000