A factory has fixed costs of $1,275 per month. The cost of producing each unit of its product is $2.50. Each unit sells for $10.
2 answers:
A factory has fixed costs of $1,275 per month. The cost of
producing each unit of its product is $2.50. Each unit sells for $10.
Cost: C(x) = 1275 + 2.5x
Revenue: R(x) = 10x
The break even for the company can be solve by equating the
cost and revenue
1275 + 2.5x = 10x
Solving for x = 170, they have their breakeven point when
they sell 170 units.
Answer:
If the company sells every unit it produces, how many units must it sell in order to break even? 170 units
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