Question

A tool manufacturer has fixed costs of $68.00 a day and variable costs of $1.00 per screwdriver

Answer 1

Answer:

46

Step-by-step explanation:

To breakeven, the total cost of the company which is the sum of the fixed and variable cost will be equal to the total sales of the company such that the profit/loss is zero.

Let x be the number of screwdriver that must be produced  daily to break even

Then

68 + 1 * x = 2.5 * x

68 + x = 2.5x

collect like terms

68 = 2.5x - x

1.5x = 68

Divide both sides by 1.5

x = 68/1.5

= 45.33

This would be approximated to 46 screws