Question

0 9. A company is selling calculators for $50 each. How many should it sell to break even if it costs $5 to manufacture each calculator in addition to a fixed coat of $36009​

Answer 1

Answer:

To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

Answer 2

Given:

The cost of one calculator = $50

The cost of manufacturing one calculator = $5

Total selling cost = $36009​

To Find:

The number of calculators to be sold

Solution:

Number of calculators = Total selling price / Selling price of one calculator

= 36009 / 50

= 720.18 ≈ 721 (approximating to next whole number)

Total manufacturing cost of 721 calculators = $5 X 721 = $3605

Number of extra Calculators = Total manufacturing cost / S.P of 1 calculator

= 3605 / 50

= 72.1

Total Calculators = 721 + 72.1

= 793.1 ≈ 794 (approximating to next whole number)

Hence, 794 calculators should be sold to break even.