Question

A company manufactures replacement parts for construction cranes. The fixed manufacturing cost is $2,400, and the variable cost per part is $5.50. Each part is sold at $8.50. The minimum number of parts the company must sell to break even is

Answer 1

✰ AnSwer :

• The company must sell minimum 728 parts to break even.

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☢ GiVen :

• Fixed manufacturing cost = $2,400
• Variable cost per part = $5.50
• Cost of each part = $8.50

☢ To Find :

• Minimum number of parts the company must sell to break even = ?

☢ SoluTion :

• Let the number of part's be x.

According to the question,

➠ Earnings = Cost

➠ 8.80x = 5.50x + 2400

➠ 3.30x = 2400

➠ x = 727.27

Hence, the company should sell 728 parts (approx.)

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Answer 2

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$\huge\bold{\mathtt{\underline{\underline{QUESTION}}}}$

✤ A company manufactures replacement parts for construction cranes. The fixed manufacturing cost is 2,400, and the variable cost per part is 5.50. Each part is sold at 8.50. The minimum number of parts the company must sell to break even is ?

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$\huge\bold{\mathtt{\underline{\underline{ANSWER}}}}$

$\sf{\red{Total\:Cost\:(TC)}}$ = 2400 + 5.50x

▶ Here , x = Number of parts

$\sf{\red{Total\:Sale\:(TS)}}$ = 8.50x

☯ What is break even ?

Break even is when total cost is equal to total sale .

Now , ATQ →

⚡ TC = TS

➡ 2400 + 5.50x = 8.50x

➡ 8.50x - 5.50 = 2400

➡ 3x = 2400

➡ x = $\dfrac{2400}{3}$

➡ x = 800

$\large\bold{\mathtt{\boxed{\pink{Number\:of\:parts\:=\:800}}}}$

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