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Alex17521 [72]
3 years ago
10

Gourmet Pets is interested in computing the break-even point for its new product Prime Cuts. The fixed costs of adding this prod

uct to the product line amounts to $20,000. Variable costs to produce one package of Prime Cuts are $2. Prime Cuts will sell for $6 per package. The break-even point would be:
A. 900 units.
B. 2,800 units.
C. 5,000 units.
Business
1 answer:
EleoNora [17]3 years ago
5 0

Answer:

C. 5,000 units

Explanation:

The break-even point is the number of units Gourmet Pets needs to sell to outweigh the fixed costs plus the production costs. Let 'x' be the number of Prime Cuts units sold, the expression that models the balance for Prime Cuts is:

B = -20,000 - 2x +6x

In order to break even, the balance must be equal to or greater than zero:

0 = -20,000 - 2x +6x\\x= \frac{20,000}{4} \\x=5,000

The break-even point would be 5,000 units.

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When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Coo
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<h3>What is line extension?</h3>
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If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

a. a brand extension.

b. quality modification.

c. line extension.

d. a new-to-the-world product.

e. functional modification.

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