ambermorgan64
contestada

Juice boxes are sold in a local store for 65 cents each. The factory has $1400 in fixed costs plus 15 cents of additional expense for each juice box made. Assuming all juice boxes manufactured can be sold, find the break-even point.

Respuesta :

lublana

Answer:

Break even occurs at 2800 juice boxes.

Step-by-step explanation:

Fixed cost form the factor = $1400

Variable cost per unit juice box = 15 cents = $0.15

Let number of juice boxed produced to get brek even point = x

Then total cost = c(x)= 1400+0.15x

Selling price per unit juice box = 65 cents = $0.65

Then total sales = R(x)= 0.65x

At break even both sales and cost will be equal so we get:

[tex]0.65x=1400+0.15x[/tex]

[tex]0.65x-0.15x=1400[/tex]

[tex]0.50x=1400[/tex]

[tex]x=\frac{1400}{0.50}[/tex]

[tex]x=2800[/tex]

Hence break even occurs at 2800 juice boxes.

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