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Alex
3 years ago
13

The fixed cost of Brendon Willows, a baseball bat manufacturing company, is $500,000 per year. The cost of wood and labor to man

ufacture one bat is $5. If the customers pay $25 to buy one bat, how many bats does Brendon Willows need to sell to break even?A. 20,000B. 25,000C. 100,000D. 150,000
Business
1 answer:
Inessa [10]3 years ago
7 0

Answer:

option (B) 25,000

Explanation:

Data provided in the question:

Fixed cost = $500,000 per year

Cost of wood and labor to manufacture one bat = $5

Selling price of the bat = $25

Now,

At breakeven, total cost equals to the total revenue

let the breakeven quantity be 'x'

thus,

$500,000 + $5x = $25x

or

$25x - $5x = $500,000

or

$20x = $500,000

or

x = 25,000

Hence,

the correct answer is option (B) 25,000

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1 year ago
Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its a
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Answer:

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