Strudl8920
04.02.2020 •
Mathematics
ray bond sells handcrafted yard decorations at county fairs. the variable cost to make these is $20 each, and he sells them for $50. the cost to rent a booth at the fair is $150. how many of these must ray sell to break even?
ray bond is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. if he was able to succeed in reducing this cost, what would the break-even point be?
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Ответ:
break even units for both the cases will be 5
Step-by-step explanation:
Data provided in the question:
For the case 1
Variable cost = $20 each
Selling cost = $50
Rent for the booth fair = $150
Now,
Let break even units be x
At break even
Total cost = Total revenue
Thus,
$20x + $150 = $50x
or
$50x - $20x = $150
or
$30x = $150
or
x = 5
Case 2
Variable cost = $15 per unit
Thus,
At break even
Total cost = Total revenue
Thus,
$15x + $150 = $50x
or
$50x - $15x = $150
or
$35x = $150
or
x = 4.28 ≈ 5
The break even point will still remain the same.
Ответ:
243
Step-by-step explanation: