caitlinhardin9131

07.09.2021 • 

Mathematics

An electronics firm is currently manufacturing an item hat has a variable cost of $0.50 per unit and a selling price of $1.10 per unit. Fixed costs are $14,000. Current volume is 35,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000 . Variable cost would increase to $0.60 , but volume should jump to 50,000 units due to a higher-quality product.
Based on the given information, the decision should be to:
A. For Smithson Cutting, the break-even point in units = ?
B. For Smithson Cutting, the break-even point in dollars =?

Ответ:

Heneyda

16.05.2021

Mathematics

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$5

Step-by-step explanation:

Let the cost of one burger be $b while the cost of one small fries be s

2 burgers and 2 small fries cost $14

This means that;

2b + 2s = 14

divide both sides by 2

b + s = 7 •••••••• (i)

Three burgers and four small fries cost $23

Mathematically;

3b + 4s = 23 •••••••• (ii)

From i , we can see that s = 7- b

we can now substitute this into equation ii

3b + 4(7-b) = 23

3b + 28 -4b = 23

4b -3b = 28 -23

b = $5

one burger costs $5

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